BMW: Barclays still 'overweight' - but cuts target price
(CercleFinance.com) - Barclays maintains its "overweight" rating on the BMW share, although has trimmed its target price from 98 euros to 96 euros, following lower sales forecasts for the automotive sector in view of the slowing momentum in China, Europe and the US.
Given the recent momentum in demand, which are still weaker than expected, the broker has cut its assumptions for sales volumes in China in 2019 (-4.5%, against -2.5% previously) and 2020 (+3.5%, against +5%).
Likewise, Barclays is reducing its estimates for Europe, now anticipating a slowdown of 0.3% this year, followed by a 0.9% fall next year. Regarding the US, it still expects a 2.1% fall in 2019, but now forecasts a 1% decline in 2020.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Given the recent momentum in demand, which are still weaker than expected, the broker has cut its assumptions for sales volumes in China in 2019 (-4.5%, against -2.5% previously) and 2020 (+3.5%, against +5%).
Likewise, Barclays is reducing its estimates for Europe, now anticipating a slowdown of 0.3% this year, followed by a 0.9% fall next year. Regarding the US, it still expects a 2.1% fall in 2019, but now forecasts a 1% decline in 2020.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.