BMW: AlphaValue upgrades directly from sell to buy

(CercleFinance.com) - AlphaValue on Thursday upgraded its rating on BMW shares to "accumulate" from "reduce", having increased its corresponding target price from 77.
3 euros to 95.5 euros (current price: 86 euros, +1%).

In its comments, the Parisian broker noted that the German carmaker has started the year well by unveiling "solid" preliminary figures for the first quarter.

As with Daimler, the same drivers are at work: high sales in China and a favourable price/mix effect against a backdrop of rising demand for premium and luxury SUVs, which are generating strong margins, it noted.

For the broker, these encouraging figures could result in an increase in annual targets over the coming months, as the 9.8% margin achieved in the first three months of the year is well above the 6% to 8% target range communicated by the group.

Unless the group prefers to keep its forecasts cautious, AlphaValue says, an approach that can be justified in view of the headwinds that are currently weighing on the sector.

The BMW share is up about 1% in early afternoon trading, outperforming the DAX 30, which itself is up around 0.5%.


Copyright (c) 2021 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.