UBS analyst Patrick Hummel has shifted his preference from Mercedes-Benz to BMW, citing improved cash flow and attractive yield prospects for BMW, which saw a 1.5% rise in share price. In contrast, Mercedes-Benz shares fell 1.2% following a downgrade by Barclays, which expressed concerns over the impact of electric vehicle investments and regulatory risks. Despite a recent recovery, both BMW and Mercedes-Benz remain significant underperformers in the DAX for 2024.
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 analyst Patrick Hummel's shift in preference from Mercedes-Benz to BMW has led to a 1.1% rise in BMW's shares, while Mercedes-Benz saw a 1.6% decline. Hummel cites BMW's improved cash flow and attractive yield prospects, 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 amid mixed trends.
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.
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