An upgrade by Bank of America has pushed Mercedes-Benz shares closer to their annual high. However, given the operational risks, it remains to be seen whether this will result in a year-end rally.
• Mercedes-Benz with upgrade by Bank of America
• Stock nears 52-week high
• Uncertainties remain
The latest assessment from Bank of America has recently given Mercedes-Benz shares a tailwind. On Friday, the share ended XETRA trading 1.87 percent higher at 61.55 euros, coming closer to its 52-week high of 63.17 euros. Since the start of the year, the price increase for investors has totaled 14.41 percent – compared to the German leading index DAX, which has gained around 21 percent since January, the share price has performed comparatively disappointingly.
Does the BoA assessment now put the stock on a rally course?
The year is not over yet and the BoA’s assessment could provide further momentum in the last few meters. The major US bank abandoned its previously skeptical assessment and upgraded the car manufacturer from “underperform” to “neutral”. At the same time, the price target was raised significantly to around 63 euros. According to analysts’ estimates, the biggest burdens for Mercedes have been dealt with for the time being.
Which makes analysts optimistic
The positive factors include, above all, the brighter outlook for the European automotive industry in the coming year. There are also political signals from the USA: Under President Trump, easing of emissions standards has been announced, which reduces the regulatory pressure on manufacturers like Mercedes. Internally, the group continues to implement a strict cost-cutting program that will last until 2027.
Year-end rally unclear
Whether the momentum of analysts’ assessments will be enough to help Mercedes-Benz shares achieve a year-end rally remains to be seen. Ultimately, BoA’s analysis is a signal that supports the stock in the short term, but does not guarantee a continuation of the rally. Because operationally, the car manufacturer continues to struggle with headwinds: On the other hand, there is a weaker sales environment, possible tariffs and costs for restructuring Job cuts. The cyclical nature of the industry remains a source of uncertainty.
Editorial team finanzen.net
Selected leverage products on Mercedes-Benz Group (ex Daimler)
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Mercedes-Benz Group (ex Daimler)
The leverage must be between 2 and 20
Advertising