Mercedes-Benz: Stifel confirms its recommendation

(CercleFinance.com) - Stifel maintains its 'hold' rating on Mercedes-Benz shares, with an unchanged target price of 64 euros.


The analyst reports that the German daily Handelsblatt has announced that Mercedes plans to reduce its EBIT margin targets for the Cars division.

The article quotes a Mercedes executive: 'For 2025 and 2026, we are heading for a difficult period. We can count ourselves lucky if we manage to get back to an 8-10% margin in the medium term', reports Stifel

Mercedes is forecasting a 7.5-8.5% margin for its Cars division in 2024, up from 4.7% in the third quarter, and the consensus is for 7.1% in 2025.

Stifel believes that this announcement of lower targets, combined with the announcement of a €5 billion savings plan (mentioned by Manager Magazin on December 12), would testify to the deterioration of the situation.

These savings of 5 billion euros imply an impact on margins of around 5%. If we add medium-term targets reduced by around 4 percentage points, the total change would reach around 9 percentage points', warns the analyst firm.

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