BMW: Stifel on hold, cuts TP

(CercleFinance.com) - Stifel maintains its 'hold' recommendation on BMW shares, with a target price lowered from E95 to E84.


Yesterday, the car maker reported cash burn of around E2.5bn in Q3, with EBIT margin still below expectations, and strong R&D capitalisation.

Donald Trump's election makes new tariffs more likely, which would negatively affect BMW. All these factors have contributed to a negative reaction on the share price, the broker says.

Against this backdrop, Stifel has lowered its EPS forecasts for 2024 (-24%) and 2025 (-23%).

The analyst remains cautious for the time being, believing that FCF forecasts seem 'very ambitious' and pointing out that his estimates for 2025 are 14% below consensus.


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