BMW: HSBC downgrades stock

(CercleFinance.com) - HSBC downgrades its recommendation on BMW from 'buy' to 'hold' with a target price reduced from E93 to E80, seeing automotive margins under pressure in the medium term and well below the strategic corridor of 8% to 10%.


The recovery expected after the 2024 recalls seems to have been wiped out by the headwinds of customs duties and supplier support, the broker points out, which reduces his operating profit estimates by 13% to 14%.

It's too early to expect a strategic response, but BMW's relaxed tone raises concerns about the pace of margin recovery, HSBC adds, which would prefer to see more urgency from the German automaker.


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