Jefferies upgraded Ford (F) to Hold from Sell this morning, while the firm's analyst also called the automaker's stock a better pick at this time than GM (GM), on which he also kept a Hold rating.

FORD: Jefferies analyst Philippe Houchois noted that consensus earnings per share estimates for Ford have dropped 23% since June, while higher interest rates are improving its pension situation. Additionally, Ford is less vulnerable than GM or Fiat Chrysler (FCAU) to the border adjustment tax being considered by Congressional Republicans, and it has greater exposure to light and medium duty vehicles, leaving it well-positioned to benefit from infrastructure stimulus, according to the analyst. GM: It will be "challenging" for GM to generate $6B of free cash flow in 2017, as it did in 2016, Houchois warned. The analyst lowered his 2017 and 2018 estimates for the automaker to below consensus levels.

WHAT'S NOTABLE: On February 8, Macquarie analyst Takuo Katayama blamed the decline in GM's stock following its Q4 results on concerns regarding its margins. However, he believes that these concerns are misplaced, since the decline in its margins was caused by higher costs spurred by new product launches in the U.S. and a negative mix impact from China. Katayama kept a $49 price target and an Outperform ratings on the shares.

PRICE ACTION: In morning trading, Ford rose about 1% to $12.50 amid the broader market advance, while GM advanced 0.5% to $35.24.