BMW: UBS reiterates its recommendation after warning

(CercleFinance.com) - UBS confirms its neutral recommendation on the stock with an unchanged price target of E94 following the group's announcement of a downward revision of its forecasts.


The group is now targeting an EBIT margin for 2024 in the range of 6% to 7% (previously: 8% to 10%) and a return on capital employed (RoCE) of between 11% and 13% (previously: 15% to 20%). Free cash flow in the automotive sector is estimated at over €4 billion for fiscal 2024.

' the lowering for consensus is around 15%, of which around half affects the core business. The 2025 automotive margin is likely to be below 8%. Future capital allocation could be negatively affected' says UBS.

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