BMW: RBC 'more constructive' on stock
(CercleFinance.com) - On Tuesday RBC maintained its "sector perform" (neutral) rating on the BMW share, along with a target price of 107 euros, although said that it could be time to be "more constructive" on the stock.
In a report, the Canadian broker points out that the German car group's share price has only recovered by 106% since the lows reached during the pandemic, while in comparison, Mercedes-Benz shares have recovered by 231%.
The broker justifies this difference in performance by the fact that Mercedes has split off its truck and heavy goods vehicle business, as well the difference in margins.
While Mercedes generates a profit margin of 15.7% in its car division, BMW's margin is only 8.9%, RBC said.
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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.
In a report, the Canadian broker points out that the German car group's share price has only recovered by 106% since the lows reached during the pandemic, while in comparison, Mercedes-Benz shares have recovered by 231%.
The broker justifies this difference in performance by the fact that Mercedes has split off its truck and heavy goods vehicle business, as well the difference in margins.
While Mercedes generates a profit margin of 15.7% in its car division, BMW's margin is only 8.9%, RBC said.
Copyright (c) 2022 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.