Mercedes-Benz: Jefferies downgrades its recommendation

(CercleFinance.com) - Jefferies downgrades its recommendation on Mercedes-Benz Group from 'buy' to 'hold', with a price target reduced by 18% to 60 euros, in a sector note that sees it symmetrically raise its position on its peer BMW Group.


The broker thus changes its preference among 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', adds Jefferies.

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