Mercedes-Benz: Stifel still on hold

(CercleFinance.com) - Stifel maintains its 'hold' rating on Mercedes-Benz shares, with an unchanged target price of E64.


The analyst reports that the German daily Handelsblatt has announced that Mercedes plans to reduce its EBIT margin targets for the Cars division.

The article quotes a Mercedes executive: For 2025 and 2026, we are heading for a difficult period. We can count ourselves lucky if we manage to get back to an 8-10% margin in the medium term, Stifel reports.

Mercedes forecasts a 7.5%-8.5% margin for its Cars division in 2024, up from 4.7% in Q3; the consensus is for 7.1% in 2025.

Stifel believes that this announcement of lower targets, combined with the announcement of a E5bn savings plan (mentioned by Manager Magazin on 12 December), would testify to the deterioration of the situation.

These savings of E5bn imply an impact on margins of around 5%. If we add medium-term targets reduced by around 4%, the total change would reach around 9%, the analyst warns.


Copyright (c) 2025 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.