BMW: shares rise on UBS upgrade

(CercleFinance.com) - BMW shares are up 3.
4% on Wednesday, outperforming Germany's DAX index, after UBS upgraded the carmaker from "neutral" to "buy".

In a note on the auto sector and the coronavirus crisis, the broker cited BMW's "resilient balance sheet, strong track record from past crises in terms of cost flexibility and low finco losses".

"The current market cap of BMW and some other OEMs has even fallen below the current net cash and the book value of the finco", it pointed out.

"This territory appears attractive for selectively buying our best ideas with a 12-month view, even though the trough may not be reached just yet," UBS added.

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