Jefferies upgrades BMW to 'buy,' lowers Mercedes-Benz to 'hold' based on risk profiles.

From Investing.com: 2024-12-06 06:10:51

Jefferies analysts have upgraded BMW to a “buy” rating and downgraded Mercedes-Benz Group to “hold” due to differing risk profiles and strategic positioning in the automotive industry. BMW’s lower-risk profile is supported by its long-term strategy and strong foothold in electric vehicles, while Mercedes-Benz faces challenges in reorganization and luxury strategy adjustments. BMW’s balanced earnings profile and lower reliance on premium-end sales give it an edge over Mercedes-Benz in weathering global market shifts and complying with EU CO2 reduction targets. BMW’s peak in capital expenditure cycle and strategic initiatives position it well for future benefits, while Mercedes-Benz’s heavy realignment investments may impact free cash flow. Jefferies has raised BMW’s price target to €85 and lowered Mercedes-Benz’s target to €60, reflecting confidence in BMW’s trajectory and challenges in Mercedes-Benz’s transformation.



Read more at Investing.com: Jefferies upgrades BMW to ‘buy,’ lowers Mercedes-Benz to ‘hold’ amid risk shift By Investing.com