Barclays maintains negative view on European autos; downgrades BMW, Porsche

AUMOVIO SE

09/01/2026 07:47

** Barclays reiterates negative view on European autos into 2026, citing persistent structural headwinds and high valuations

** The broker expects much of 2026/27 earnings growth to come from cost-cutting and self-help measures

** Barclays cuts BMW BMWG.DE and Porsche P911_p.DE to "underweight" from "equal-weight", citing elevated valuations and its below-consensus estimates

** Its top picks are "overweight"-rated Ferrari RACE.MI and Volkswagen VOWG_p.DE, based on the former's earnings growth visibility and execution, and the latter's free cash flow recovery and cost discipline

** The broker says it favours Mercedes MBGn.DE ("equal-weight") over BMW due to its stronger underlying free cash flow and self-help story

** Among auto suppliers, Barclays prefers Forvia FRVIA.PA, expecting deleveraging and value crystallisation, and Aumovio AMV0n.DE with its attractive turnaround and deep value setup (both "overweight")

** The broker expects European truckmakers to remain challenged by market and tariff headwinds, particularly in the U.S. where uncertainty could prevail for most of 2026

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))