1345 GMT - Key messages from recent meetings with Mercedes-Benz highlight that supply issues are still a concern for GLC and E-class models, but progress is being made, HSBC analysts write. The company has seen a strong start for vans, but that is expected to ease, while a soft start for cars is expected to improve, the bank says. 1Q car volumes are seen down over 7% due to supply issues, with a margin at the bottom end of the 2024 10%-12% guide. 1Q van volumes have been strong and the margin is seen in line with 4Q 2023, potentially ahead of the 2024 12%-14% guide, HSBC says. "We see re-rating potential with clarity on buybacks and capital allocation." HSBC has a buy rating and EUR85 target price. Shares fall 0.8% to EUR74.64. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
April 05, 2024 09:45 ET (13:45 GMT)
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