Trump to impose 100% tariff on China starting November 1
Investing.com - HSBC lowered its price target on Bayerische Motoren Werke AG (ETR:BMW) (OTC:BMWYY) to EUR83.00 from EUR84.00 while maintaining a Hold rating on the stock.
The price target reduction comes as BMW faces ongoing weakness in the Chinese market, which has been evident throughout most of 2025 and prevented the company from achieving its ambitions in the region.
HSBC noted that consensus estimates were already aligned with BMW’s modified margin range, suggesting market expectations had already factored in some of the challenges.
The research firm questioned why a profit hit of approximately EUR600-650 million and a tariff impact of around EUR900 million resulted in a much larger EUR2.5 billion reduction to BMW’s free cash flow guidance, which was cut from over EUR5 billion to over EUR2.5 billion.
With BMW having spent approximately EUR2.6 billion on dividends and EUR1 billion on share buybacks, HSBC also raised questions about the company’s capacity to continue its buyback program in 2026, noting there remain 52-53 million shares of headroom under the current buyback authorization that runs through December 2025.
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