In a report released today, Elizabelle Pang from DBS maintained a Buy rating on Bayerische Motoren Werke Aktiengesellschaft (BAMXF – Research Report), with a price target of €85.00.
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Elizabelle Pang’s rating is based on a combination of factors that underscore the potential of Bayerische Motoren Werke Aktiengesellschaft (BMW) as a solid investment opportunity. Despite challenges in the Chinese market, BMW has shown remarkable progress in its transition to battery electric vehicles (BEVs), achieving a notable BEV sales mix of 17.4%, surpassing its European competitors. This progress positions BMW as a leading premium manufacturer and an emerging player in the luxury BEV segment, which is crucial for meeting EU 2025 CO2 targets.
Furthermore, BMW’s financial outlook is promising with expectations of significant sequential improvement in earnings before tax (EBT) for Q4 2024, driven by an enhanced product mix and a sales ramp-up in China. Although there are potential risks such as demand fluctuations in China and increased competition, BMW’s robust dividend yields and forward price-to-earnings ratio of 4.8x offer a compelling valuation. The company’s strategic initiatives and strong brand position contribute to the Buy rating, with a target price maintained at EUR85.
Pang covers the Consumer Cyclical sector, focusing on stocks such as General Motors, Tesla, and Ford Motor. According to TipRanks, Pang has an average return of -1.7% and a 42.65% success rate on recommended stocks.
In another report released on February 3, Bernstein also maintained a Buy rating on the stock with a €92.00 price target.