Mercedes-Benz Returns Are Attractive, But Margin Pressure to Continue -- Market Talk

Dow Jones12-03

1525 GMT - Mercedes-Benz is still an attractive cash return story, but pressure on its cars margin is set to continue, UBS analyst Patrick Hummel writes. The bank expects more substantial cuts to the car unit EBIT on the challenging China outlook, likely margin dilution from new platforms and EU carbon dioxide compliance headwinds. UBS expects Mercedes-Benz to guide for a 6%-8% cars EBIT margin in 2025/26. "Despite lower earnings and free cash flow, we expect Mercedes-Benz to continue its attractive capital allocation policy, which should provide support to the share price." UBS downgrades the company to neutral from buy and lowers its price target to 55 euros from 72 euros. Shares fall 2% to 52.28 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

December 03, 2024 10:25 ET (15:25 GMT)

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UBS expects Mercedes-Benz to guide for a 6%-8% cars EBIT margin in 2025/26. \"Despite lower earnings and free cash flow, we expect Mercedes-Benz to continue its attractive capital allocation policy, which should provide support to the share price.\" UBS downgrades the company to neutral from buy and lowers its price target to 55 euros from 72 euros. Shares fall 2% to 52.28 euros. 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The bank expects more substantial cuts to the ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4099","symbol_name":"汽车制造商","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2488294103","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488294103","pubTimestamp":1733239500,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1525 GMT - Mercedes-Benz is still an attractive cash return story, but pressure on its cars margin is set to continue, UBS analyst Patrick Hummel writes. 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