Mercedes-Benz Valuation Could Rise on Cash Return Plans -- Market Talk

Dow Jones03-06

1121 GMT - Mercedes-Benz share-price volatility has been reduced through management's strong message on dividends, and Citi says it could also boost the company's valuation. The stock-price increase could come despite likely weak earnings in the first half of this year, the bank says. After weak 2026 car EBIT margin guidance of 3%-5%, many investors were perplexed as to why Mercedes-Benz shares did not fall further, Citi says. The bank argues it was due to guidance being low enough to reduce fears of a profit warning, plans to cut German capacity to 2.4 million units from 2.8 million, and the message to return 6 billion euros to shareholders this year. Citi raises its share target price to 60 euros from 58 euros and keeps at neutral. Shares fall 0.7% to 55.27 euros. (dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

March 06, 2026 06:21 ET (11:21 GMT)

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