UBS has upgraded BMW shares to Buy, citing strong free cash flow and compliance with EU CO2 emissions policies, while downgrading Mercedes-Benz to Neutral. The analyst team favors BMW over its German counterpart due to these positive catalysts.
UBS has dampened sentiment in the automotive sector by downgrading its recommendations for suppliers Forvia and Valeo, leading to declines of 4.9% and 2.9%, respectively. Schaeffler also fell by 4.6%, while Mercedes-Benz dropped 2.0%. In contrast, BMW saw a slight increase of 0.3% due to positive remarks, and Continental's loss was limited to 0.6% thanks to its strong tire business.
UBS has downgraded Mercedes-Benz from "Buy" to "Neutral," lowering its price target from 72 to 55 euros, citing ongoing pressure on car margins. Meanwhile, Barclays has cut its rating from "Equal Weight" to "Underweight," with a new target price of 48.50 euros, anticipating further guidance during the upcoming capital market day. In XETRA trading, shares fell by 1.48% to 52.56 euros.
UBS has downgraded Mercedes-Benz from "buy" to "neutral," reducing its target price from 72 to 55 euros. Analyst Patrick Hummel noted that while the brand maintains an attractive distribution story, automotive margin pressures persist. BMW has emerged as Hummel's new preferred choice.
Mercedes-Benz shares have declined following downgrades from UBS to 'Neutral' and Barclays to 'Underweight', with Barclays reducing the target price from 65 to 48.50 euros. Analyst Henning Cosman noted that the "new normal" is below previous expectations, anticipating further guidance at the capital market day in mid-February. In XETRA trading, shares fell 1.48 percent to 52.56 euros.
UBS analyst Patrick Hummel's shift in preference from Mercedes-Benz to BMW has led to a 1.1% rise in BMW shares, while Mercedes-Benz fell by 1.6%. Hummel cites BMW's improved cash flow and yield prospects, while expressing concerns over Mercedes' investments in electric vehicles and regulatory risks. Barclays also downgraded Mercedes to "Underweight," reflecting a cautious outlook for the automotive sector amid mixed trends.
UBS analyst Patrick Hummel's shift in preference from Mercedes-Benz to BMW has led to a 1.1% rise in BMW shares, while Mercedes-Benz saw a 1.6% decline. Hummel cites better cash flow and yield prospects for BMW, contrasting with concerns over Mercedes' investments in electric vehicles and regulatory risks. Barclays also downgraded Mercedes to "Underweight," reflecting a cautious outlook for the automotive sector.
UBS has downgraded Mercedes-Benz from "Buy" to "Neutral," reducing its target price from 72 to 55 euros. Analyst Patrick Hummel noted that while the company still presents an attractive dividend story, ongoing pressure on car margins is a concern. BMW has emerged as his new top favorite.
Mercedes-Benz Group shares began December with a 0.7% gain after a challenging November, which saw a 4.9% decline and a drop to an annual low of EUR 50.75. A potential recovery could emerge if prices surpass the September low of EUR 54.05, while a fall below EUR 51.91 may lead to further losses.
UBS has downgraded Mercedes-Benz from "Buy" to "Neutral," reducing its target price from 72 to 55 euros. Analyst Patrick Hummel noted that while the company still presents an attractive dividend story, ongoing pressure on car margins is a concern. BMW has been highlighted as UBS's new top favorite.
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