Stifel Nicolaus analyst Daniel Schwarz maintained a Hold rating on Bayerische Motoren Werke Aktiengesellschaft (BAMXF – Research Report) today and set a price target of €84.00.
Daniel Schwarz has given his Hold rating due to a combination of factors impacting Bayerische Motoren Werke Aktiengesellschaft. The company’s Q4 revenues fell short of expectations by 13%, primarily due to a more negative ‘Eliminations’ line, while the Automobiles EBIT was 6.6% below consensus, despite the margin aligning with expectations. Additionally, the profitability of the Financial Services division was lower than anticipated, although free cash flow exceeded consensus by 14.8%.
BMW’s guidance for the Automobiles EBIT margin of 5-7% was a negative surprise to investors, who expected a higher range of 6-8%. The proposed dividend of EUR4.30, with a payout ratio of 36.7%, also did not meet consensus expectations, which anticipated EUR4.33, following a previous year’s payout of EUR6. Furthermore, while management changes were announced, they were not unexpected and did not introduce any significant shifts in strategy. These elements combined to support a cautious outlook, justifying the Hold rating.
In another report released today, RBC Capital also maintained a Hold rating on the stock with a €80.00 price target.