Mercedes-Benz: RBC lowers price target
(CercleFinance.com) - On Tuesday, RBC maintained its 'outperform' rating on Mercedes-Benz, with a target price lowered from E90 to E87, following the publication of its Q2 results.
In a research note, the Canadian broker acknowledges that the German automotive group will have to deliver a solid H2 in order to meet its annual targets, but also points out that the group can now boast the best return on capital among European automakers.
In Q2 alone, it points out, Mercedes paid out E5.5bn in dividends and bought back E2.8bn worth of its own shares, totaling E8.3bn, representing 12.9% of the company's market capitalisation.
Given the broad base of European investors in the company's capital, the broker nevertheless believes that this element is not sufficiently taken into account by the market.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a research note, the Canadian broker acknowledges that the German automotive group will have to deliver a solid H2 in order to meet its annual targets, but also points out that the group can now boast the best return on capital among European automakers.
In Q2 alone, it points out, Mercedes paid out E5.5bn in dividends and bought back E2.8bn worth of its own shares, totaling E8.3bn, representing 12.9% of the company's market capitalisation.
Given the broad base of European investors in the company's capital, the broker nevertheless believes that this element is not sufficiently taken into account by the market.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.