Wall Street analysts are underestimating Ford Motor's ability to cut its costs, according to Jefferies.
The firm raised its rating to buy from hold for the automaker's shares, saying the company will report profitability above expectations in two years.
"Despite being perceived a laggard, we think Ford is early among global OEMs in re-evaluating how it allocates capital, a process most OEMs outside NA have yet to address. Ford is getting no credit for ambitious but credible cost targets and for multiple operating and strategic levers still available to improve market and product exposure," analyst Philippe Houchois said in a note to clients Tuesday. "Rarely have we seen an OEM generate so little passion."