Mercedes-Benz: Oddo BHF still a seller, but raises TP
(CercleFinance.com) - Oddo BHF maintains its 'underperform' rating on Mercedes-Benz shares, but has nudged up its target price for them from E45 to E47, citing the automaker's 'better-than-expected' end to the year.
Thus, the Cars Q4 margin should exceed the previously indicated range (6%-7%; VA consensus of 6.6%); analysts now expect this to be 8.3%, which, coupled with a performance from the other Business Units broadly in line with expectations, leads analysts to raise their 2024 EBIT estimate by 4%, placing them 5% above the Visible Alpha consensus, the broker says.
Oddo BHF nevertheless refers to the company's 'reserved tone' regarding its 2025 outlook, and is therefore 'cautious' in view of the multiple headwinds the group is likely to face this year (China pricing, need to accelerate on dilutive BEV, financial support for Chinese OEMs and dealers, S Class at the end of the cycle...).
The group does not offer much more information on the FY outlook, but it should be remembered that several sector peers have also pointed to a weighing cost environment (OEMs, Chinese dealers in particular), the broker concludes.
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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.
Thus, the Cars Q4 margin should exceed the previously indicated range (6%-7%; VA consensus of 6.6%); analysts now expect this to be 8.3%, which, coupled with a performance from the other Business Units broadly in line with expectations, leads analysts to raise their 2024 EBIT estimate by 4%, placing them 5% above the Visible Alpha consensus, the broker says.
Oddo BHF nevertheless refers to the company's 'reserved tone' regarding its 2025 outlook, and is therefore 'cautious' in view of the multiple headwinds the group is likely to face this year (China pricing, need to accelerate on dilutive BEV, financial support for Chinese OEMs and dealers, S Class at the end of the cycle...).
The group does not offer much more information on the FY outlook, but it should be remembered that several sector peers have also pointed to a weighing cost environment (OEMs, Chinese dealers in particular), the broker concludes.
Copyright (c) 2025 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.