EU and US could reach trade deal this weekend - Reuters
On Friday, Morgan Stanley (NYSE:MS) adjusted its price target on Mercedes-Benz (OTC:MBGAF) Group (MBG:GR) (OTC:DDAIF), reducing it from EUR72.00 to EUR64.00, while maintaining an Overweight rating on the company’s shares. The revision reflects the firm’s analysis of the automotive manufacturer’s financial outlook amid various market challenges.
The firm’s analysts noted that Mercedes-Benz is facing cyclical, structural, and tariff-related headwinds. Despite these challenges, they believe the company’s superior structural margins provide a buffer that helps protect its operational cash flow. Morgan Stanley emphasized the strength of Mercedes-Benz’s cash position, its disciplined approach to investments, and its clear commitment to shareholder returns.
According to the research firm, these factors combine to offer a 9% total yield at current levels under their base case scenario. Morgan Stanley also provided insights into a less favorable scenario, stating that even with a 25% tariff impact, dividends could be lower but would still yield 6%. This assessment underscores the analysts’ view that Mercedes-Benz’s financial health remains robust despite the potential for adverse conditions.
Mercedes-Benz Group’s stock performance and investor returns are likely to be closely watched as the company navigates the complex global economic environment described by Morgan Stanley. The revised price target and maintained Overweight rating suggest the firm’s continued confidence in the automaker’s financial strategy and resilience.
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