BMW: Stifel on hold, cuts TP
(CercleFinance.com) - Stifel maintains its 'hold' recommendation on BMW shares, with a target price lowered from E95 to E84.
Yesterday, the car maker reported cash burn of around E2.5bn in Q3, with EBIT margin still below expectations, and strong R&D capitalisation.
Donald Trump's election makes new tariffs more likely, which would negatively affect BMW. All these factors have contributed to a negative reaction on the share price, the broker says.
Against this backdrop, Stifel has lowered its EPS forecasts for 2024 (-24%) and 2025 (-23%).
The analyst remains cautious for the time being, believing that FCF forecasts seem 'very ambitious' and pointing out that his estimates for 2025 are 14% below consensus.
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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.
Yesterday, the car maker reported cash burn of around E2.5bn in Q3, with EBIT margin still below expectations, and strong R&D capitalisation.
Donald Trump's election makes new tariffs more likely, which would negatively affect BMW. All these factors have contributed to a negative reaction on the share price, the broker says.
Against this backdrop, Stifel has lowered its EPS forecasts for 2024 (-24%) and 2025 (-23%).
The analyst remains cautious for the time being, believing that FCF forecasts seem 'very ambitious' and pointing out that his estimates for 2025 are 14% below consensus.
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.