Mercedes-Benz: shares struggle after downgrade

(CercleFinance.com) - On Thursday, Mercedes-Benz Group shares were one of the biggest decliners on the Frankfurt Stock Exchange's DAX index, penalized by a note from Barclays, which lowered its recommendation from 'overweight' to 'in-line weighting'.


Shortly before 4:00 p.m., the stock fell by 2%, back towards its annual lows, while the DAX lost 0.8%.

In a note, Barclays expressed concern that, after the warning issued by the automotive group last month, the prospect of an operating margin of 6% in the auto division could constitute a "new norm".

In any case, the target of a 10% margin by 2025/2026 now seems out of reach", says the analyst, who has accordingly lowered his price target from 76.5 to 65 euros.

Since the beginning of the year, Mercedes shares have lost more than 10% of their market capitalization.

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