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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