BMW's Outlook Looks Better Than Mercedes's -- Market Talk

Dow Jones12-06

1117 GMT - Analysts at Jefferies have switched their preference to BMW from Mercedes-Benz among the premium auto makers. BMW has a better risk outlook for 2025 surrounding growth, tariffs, carbon dioxide compliance and strategic stability, the analysts say. A more even distribution of volume and earnings across price segments, and lower dependence on exports to China support better resilience at BMW, they add. BMW also appears determined to distribute 100% of annual free cash flow, similar to Mercedes-Benz. Meanwhile, correcting Mercedes-Benz's excess reliance on top-end cars will likely require time and aggressive resizing. Jefferies upgrades BMW to buy from hold and raises its price target on the stock to 85 euros from 80 euros. It downgrades Mercedes-Benz to hold from buy and lowers its price target to 60 euros from 73 euros. (dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

December 06, 2024 06:18 ET (11:18 GMT)

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