General Motors’ stock surged 5.01% during intraday trading on Monday, reflecting growing investor optimism following a prominent analyst upgrade and a strong quarterly earnings report.

The rally was primarily fueled by Jefferies analyst Philippe Houchois, who upgraded GM shares to Buy from Hold and raised the price target to $99 from $90. Houchois cited confidence that 2027 will further strengthen GM’s competitive position within the U.S. profit oligopoly, and that the company is poised to deliver over $10 billion in real free cash flow. The upgrade was part of a broader bullish call on Detroit automakers, with Jefferies also upgrading Ford.

The positive sentiment was reinforced by GM’s robust second-quarter results, which saw adjusted earnings per share beat expectations by approximately 11.6%. Analysts have also highlighted the company’s high-margin software and services business, including OnStar and Super Cruise, as a key growth driver. OnStar alone generated $800 million in quarterly revenue with a 70% gross margin, far exceeding the profitability of traditional vehicle sales.