Jefferies lifts Mercedes-Benz to 'buy', sees Europe momentum

Bayerische Motoren Werke AG

Today 10:08

** Jefferies upgrades Mercedes-Benz Group MBGn.DE to "buy" from "hold", citing a strong volume momentum in Europe and effective cost reduction measures
** Compared to its China and U.S. markets, Europe is showing "the strongest momentum" with higher volumes helping to offset electric vehicle dilution, Jefferies says
** The broker notes that Q2 volumes in China are "below modest expectations" but sees upcoming model launches, prioritised pricing to improve volumes during the second half of 2026
** It adds that cost actions are ahead of the German carmaker's peers and 80% of fixed reduction targets for 2024 to 2027 are already achieved
** "Mercedes-Benz Group leads German OEMs in the cadence of restructuring, product launches and capital allocation," the broker says
** Mercedes shares haven fallen around 13% since June 15, tracking losses from German peers BMW BMWG.DE and Volkswagen VOWG.DE
** Jefferies says EU carmakers remain challenged and sensitive to EU policy decisions
** It lowers price target to €52 per share

 (Reporting by Danny Callaghan)
 ((danny.callaghan@thomsonreuters.com))