Competition between rivals in neighboring cities is speeding up in America's automotive hub.

As Ford Motor Co. (F) undergoes a so-called "double transformation," the case for investing in the Dearborn, Mich.-based automaker relative to Detroit-based General Motors Co. (GM) is improving, according to J.P. Morgan.

"We believe Ford management understands the previous deficit relative to the positioning of the investment story in comparison to General Motors and also that the story is now improved as a result of the recent announcements," J.P. Morgan analyst Ryan Brinkman wrote in a May 18 research note.

Ford is trimming its product portfolio as its plans to do away with virtually all passenger cars and is doubling down on its most profitable segments, namely trucks and SUVs. And the company's most popular vehicle, the F-150, has restarted production after a fire at a parts supplier forced production to be suspended for just over a week.

The company has also been moving beyond the traditional auto business as it invests in autonomous vehicles. It plans to deploy its autonomous vehicles on a city-by-city basis in 2021.

This move away from cars is significant to the automaker's investment story as it highlights profit improvement potential and represents a willingness to break with the past and a commitment to out-of-the-box strategic thinking that is likely to be applied to other aspects of Ford's business as well, Brinkman said.

It also "effectively plac[es] the ball in GM's court to make similar type improvements," Brinkman said. 

Ford Chief Executive Officer Jim Hackett said during the first-quarter conference call with analysts that there's about "a 50% upside to our current stock price" that can be realized by just discontinuing things it's doing.

"We believe Ford is in the process of pulling the trigger, or soon to pull the trigger, on walking away from previously core but loss-making aspects of its business," Brinkman said. "We suggest investors pull the trigger on Ford shares now, as its earnings -- and its multiple -- are likely to inflect higher as it undergoes this transformation."

J.P. Morgan reiterated its Overweight rating and its $15 price target on Ford shares.

Still, Ford shares dropped 1.3% to $11.31 at 12 p.m. New York time, after the company issued a safety recall for 151 2018 Ford F-650 and F-750 vehicles.

TheStreet presents on May 22: "How to Stomach Market Volatility." Hosted by Fisher Investments and TheStreet's Jim Cramer, the exclusive live webinar will give you the tools to successfully navigate market volatility and discuss why having a wealth manager is more critical than ever before. Quickly register for the event here

More from Investing

Data Regulation on FAANG's Could Just Be Underway: Cramer's Investing Teach-in

Data Regulation on FAANG's Could Just Be Underway: Cramer's Investing Teach-in

3 Things Investors Can Do to Stay Strategic When the Market's Volatile

3 Things Investors Can Do to Stay Strategic When the Market's Volatile

How to Be a Tactical Investor in the Current Market

How to Be a Tactical Investor in the Current Market

Canopy Growth CEO: Here's What the Future of Cannabis Looks Like for Investors

Canopy Growth CEO: Here's What the Future of Cannabis Looks Like for Investors

A Guide to Investing in the Fast-Emerging Cannabis Industry

A Guide to Investing in the Fast-Emerging Cannabis Industry