Mercedes-Benz Shareholders Get 11% Cash Return to Wait For Recovery -- Market Talk

Dow Jones02-17

1036 GMT - Mercedes-Benz guidance disappointed, but the results were sweetened with around 6 billion euros of cash returns in 2026, representing an 11% yield, UBS analyst Patrick Hummel writes. Guidance for the German automaker's car earnings margin of 3%-5% versus consensus at 4%-6% points to downgrades, he says. However, as shareholders wait for a product- and cost-driven margin recovery, management proposed a surprisingly high dividend and potential further share buybacks. A first tranche of Mercedes-Benz's shares in Daimler Truck is expected to be sold this year, and UBS expects further sales ahead, boosting cash return potential. "The high visibility on cash returns should provide solid support to the share price." UBS lowers its share price target to 58 euros from 63 euros and keeps its rating at neutral. Shares rise 1.2% to 58.35 euros. (dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

February 17, 2026 05:36 ET (10:36 GMT)

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