BMW: Bernstein maintains its 'market perform' rating

(CercleFinance.com) - Sanford C.
Bernstein maintains its "market perform" rating on BMW, after the German premium carmaker posted "excellent" 2017 and fourth-quarter results.

While acknowledging BMW is an "excellent company" making "excellent products" and delivering "excellent profits," the stock needs an "equity story," i.e. reasons why investors should be interested in buying the stock, the broker says.

"Auto stocks really, really, really need an equity story at this stage of the cycle," Bernstein writes in a research note.

"BMW, wonderful company that it is, doesn't really have one," it adds.

While other auto groups can offer exciting possibilities of a merger, or a disposal, or a spin-off, or a brand turnaround, it's hard to see what the BMW narrative is, Bernstein said.

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