Mercedes-Benz: Oddo BHF cuts TP

(CercleFinance.com) - Oddo BHF reiterates its 'underperform' rating on Mercedes-Benz Group, with a target price lowered from E47 to E45, following Friday's publication of lower-than-expected quarterly results, testifying to a sharp erosion of margins.


The collapse in automotive margins reflects the rapid and highly impactful deterioration in the price/mix following the exceptional post-Covid years, explains the analyst, who sees a continuation, if not intensification, of the pressure in 2025.

The broker has therefore (once again) lowered its 2024 EBIT by 2%, to stand 5% below consensus, and, pointing to the CFO's rather cautious messages on the environment, reduced its 2025 EBIT by 5%, to stand 12% below consensus.


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