The investment firm's analyst, Emmanuel Rosner, made the move as he expects government spending on infrastructure and vehicle electrification to rise under the new Joe Biden administration.
Rosner raised his price target on the stock to $11 from $9.
Shares of Ford at last check rose 6.4% to $10.65.
"We see room for upside 2021 guidance," Rosner said in a note.
Ford also could benefit from its upcoming product cycle and savings from restructuring in South America, where it shut down its business in Brazil.
This year "should indeed see a material acceleration of electric vehicle roll-outs, and provide much clarity on winners and losers from electrification," wrote Rosner.
He added that electrification, autonomy and connectivity will remain the most powerful investment trends in the auto sector.
And Deutsche Bank raised its price target on GM to $64 from $48.
Rosner also picked EV makers Nio (NIO) - Get Report, Tesla (TSLA) - Get Report, American-Irish auto-parts maker Aptiv (APTV) - Get Report and auto-electronics supplier Visteon (VC) - Get Report among stocks that will benefit from vehicle electrification.
Rosner raised his price target on Tesla to $890 from $705.
Last week, TheStreet Founder Jim Cramer said Ford was a value stock for investors to buy as the company benefits from changes under Chief Executive Jim Farley's leadership.
"A guy like Jim Farley who is changing the culture, and there is no clearer sign of that than shutting down manufacturing in Brazil," Cramer said.
"That has been an amazing thorn in the side of all the CEOs at Ford for a very long time. The possibility is going to come where we see Europe and Latin America no longer hurting Ford. And if that's the case. Ford is going to put some very big numbers."
Shares of GM rose 1.8% to $55.82 at last check. Tesla edged up 0.3% to $847.