In a report released today, Elizabelle Pang from DBS downgraded Bayerische Motoren Werke Aktiengesellschaft (BAMXF – Research Report) to a Hold, with a price target of €85.00.
Elizabelle Pang’s rating is based on a combination of factors that reflect both challenges and opportunities for Bayerische Motoren Werke Aktiengesellschaft (BMW). The company’s recent financial performance showed a decline, with the 4Q24/2024 results missing expectations due to softer average selling prices and margins, largely impacted by intense price competition in China. This has led to a cautious outlook, as the 2025 guidance indicates a flat earnings before taxes and a potential negative impact on EBIT margins due to tariffs.
Despite these challenges, there are positive catalysts that could support BMW’s share price in the future. The introduction of 10 new models in China and the launch of the Neue Klasse platform in the second half of 2025 are expected to enhance BMW’s market position. Additionally, the company’s strong brand reputation and emerging presence in the battery electric vehicle market provide a competitive edge. However, given the current valuation and recent share price recovery, Pang suggests that investors may want to wait for more favorable entry points, thus justifying the Hold rating.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a €78.00 price target.
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