Mercedes-Benz: Jefferies downgrades stock

(CercleFinance.com) - Jefferies downgrades its recommendation on Mercedes-Benz Group from 'buy' to 'hold', with a target price reduced by 18% to E60, in a sector note in which it upgrades its peer BMW Group.


The broker thus switches preference amongst premium carmakers, based on an assessment of BMW's lower risk profile, from growth to customs duties, CO2 compliance and strategic stability.

BMW's peak in capital expenditure this year could justify a premium over a Mercedes-Benz facing repositioning and reinvestment, Jefferies adds.


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