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Investing.com - Barclays (LON:BARC) has upgraded Bayerische Motoren Werke AG (OTC:BMWYY (OTC:BMWKY)) from Underweight to Equalweight while raising its price target to EUR82.50 from EUR73.50.
The upgrade follows BMW (ETR:BMWG)’s confirmation of second-quarter automotive EBIT margin "in the range" and constructive comments on Q2 free cash flow during a recent pre-close call, which helped drive the stock up 4.1% versus the SXAP index gain of 2.0%.
Barclays noted that consensus estimates have decreased approximately 10-15% since Q1 results to a 5.3% full-year 2025 automotive margin, compared to BMW’s guidance of 5-7%.
The firm believes margin risk in the second half versus Q2 is "arguably to the upside" if there is any favorable outcome regarding EU-US tariffs, especially if it involves "netting."
Barclays analysts now align with Bloomberg consensus for 2025-27 and acknowledge that BMW shares "can very likely hold their recent gains for now" despite persistent mid-term sector concerns.
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