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Investing.com - Berenberg has reiterated a Buy rating on Bayerische Motoren Werke AG (ETR:BMW) (OTC:BMWYY) with a price target of EUR93.00, despite short-term pressures from tariffs and Chinese market challenges.
The research firm notes that delayed implementation of 15% US/EU duties, compared to the current 27.5% rate, along with ongoing difficult conditions in China, are creating earnings pressure for BMW in the third and fourth quarters of this year.
These challenges could partially undermine BMW’s stronger-than-peers resilience demonstrated throughout the year, according to Berenberg’s analysis.
Despite these headwinds, Berenberg maintains that BMW "remains fundamentally stronger than most of its direct peers" and continues to trade at approximately 7x P/E for 2026, representing a discount to Mercedes-Benz despite delivering higher margins.
Berenberg argues BMW should trade at a premium given its "material lead in navigating the margin-dilutive BEV cycle" and having already passed its peak R&D and capital expenditure for this cycle, unlike most other automotive manufacturers.
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