Mercedes-Benz: UBS still a buyer after warning

(CercleFinance.com) - Mercedes-Benz Group has reduced its annual targets, citing deteriorating economic conditions - particularly in China.


The premium automaker said it is now expecting only an adjusted EBIT margin of between 7.5% and 8.5% for its car division this year, compared with a range of 10% to 11% previously.

However, following this announcement, UBS confirms its Buy recommendation on the stock, with a target price of E78, i.e. representing upside potential of 32%.

The underlying EBIT margin for cars in H2 should fall by 350 bp, UBS says.


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