Mercedes-Benz stock price target lowered to EUR56 by Berenberg

Published 19/09/2025, 08:26
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Investing.com - Berenberg has lowered its price target on Mercedes-Benz Group (ETR:MBG) (OTC:DDAIF) to EUR56.00 from EUR58.00 while maintaining a Hold rating on the stock.

The research firm cited deteriorating pricing and mix trends in 2025 as a key concern, pointing to macro and competitive pressures in China and challenging battery electric vehicle (BEV) momentum that raise questions about the automaker’s "premiumisation" strategy.

Berenberg noted that given the worsening volume prospects for Mercedes-Benz’s premium electric vehicles, the company may need more capacity rationalization and accelerated cost-restructuring measures to support margins in the near term.

While Mercedes-Benz’s net industrial liquidity remains strong, the firm warned that free cash flow generation could show signs of softness, particularly due to investments related to the product-launch stage of the new Mercedes Modular Architecture (MMA) platform.

The research firm highlighted that Mercedes-Benz currently trades at 7.8x price-to-earnings for 2026 estimates, compared to BMW at 7.0x P/E for the same period.

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