Berenberg sees room for relief in European auto sector, ups BMW
BUZZ-Berenberg sees room for relief in European auto sector, ups BMW **Berenberg says European autos are entering a phase where catalysts shift from earnings downgrades towards regulation, cost reduction and product momentum
** Increasingly cautious market expectations could create room for relief despite continued challenges from China, geopolitical risks, inflationary pressures, overcapacity and intensifying competition
** The broker points to accelerating restructuring efforts, with BMW BMWG.DE joining sector cost-cutting programmes and Volkswagen VOWG.DE pursuing a major cost-base reset by 2030
** Strong product launch schedules over 2026-28, particularly at Volkswagen's Audi, Mercedes-Benz MBGn.DE and BMW, could support earnings growth and help narrow the technology gap with Chinese competitors
** Berenberg upgrades BMW to "buy" from "hold" and downgrades Stellantis STLAM.MI to "hold" from "buy"
** It keeps Volkswagen at "buy", while sticking to "hold" on Renault RENA.PA, Porsche PSHG_p.DE and Mercedes-Benz
(Reporting by Kira Britten)