Cautious Hold Rating for BMW Amid Declining Sales and Mixed Financial Signals

Daniel Schwarz, an analyst from Stifel Nicolaus, maintained the Hold rating on Bayerische Motoren Werke Aktiengesellschaft (BAMXF – Research Report). The associated price target remains the same with €84.00.

Daniel Schwarz has given his Hold rating due to a combination of factors impacting Bayerische Motoren Werke Aktiengesellschaft’s performance. The company reported a 1.4% year-over-year decline in retail sales for the first quarter, primarily driven by a significant 17% drop in the Chinese market. Although the Automobiles EBIT margin is expected to be in the upper half of the 5-7% full-year margin corridor, it is still projected to be lower than the previous year’s 8.8% in the first quarter.
Additionally, the volume, price, and mix were negative year-over-year, aligning with BMW’s strategic planning for 2025. The company’s financial services earnings are anticipated to rise from the low levels of the fourth quarter of 2024 but are expected to decrease significantly compared to the first quarter of 2024 due to the normalization of used car prices. These mixed signals suggest that while there is potential upside, the current market conditions and company performance warrant a cautious approach, justifying the Hold rating.

In another report released on April 3, Citi also maintained a Hold rating on the stock with a €75.00 price target.