BMW: over 50% upside potential, Credit Suisse says

(CercleFinance.com) - This morning Credit Suisse marginally adjusted its forecasts for the German premium car manufacturer BMW.


While trimming its target price from 129 euros to 126 euros, which still suggests strong potential, analysts maintain their buy rating on the stock.

Indeed, the automotive compartment has suffered on the stockmarket in recent weeks, in particular die to issues on vehicle emissions, protectionism, and the orientation of the automobile market. However, "investor interest is very high," says Credit Suisse, which believes that the sector is "oversold" on the stockmarket.

Credit Suisse finally highlights BMW's solid operational performance and a favourable risk profile that the market is neglecting. The share is only trading at a 2019 P/E of 5.9x; its yield reaches 5.3%, and the group has lots of cash, the broker's points out in a report.



Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.