Luxury auto manufacturers face challenges: BMW, Mercedes, and Porsche AG confront strong opposition.
Hey there, buddy! Let's talk about the latest scoop on the German luxury automakers, shall we? analysts from BNP Paribas Exane have been snooping around and dropped some less-than-pleasing ratings on our favorite top-notch rides - BMW, Mercedes-Benz, and Porsche.
BMW, once a cool kid on the block, has been demoted from "Neutral" to "Underperformance" by these Wall Street wizards. Meanwhile, Mercedes-Benz has managed to hold onto its existing underperforming status for the near future. As for Porsche, they've seen a slide from "Outperform" all the way to "Neutral."
These analysts forecast a grim future for these German luxury automakers, predicting it'll be 2028 before they bounce back to 2024 levels. They're bracing themselves for a world with slimmer profits and stricter electric vehicle (EV) regulations, which they call "protectionist EV dynamics." By 2027, they reckon margins for these brands will be down to single digits.
Porsche, with its high sales exposure in China, appears to be in hot water. The luxury automaker is lagging behind in tech innovation, with competitors like BYD, Xpeng, Xiaomi, and Li Auto taking the lead. BMW, on the other hand, might have a trick up its sleeve with its Neue Klasse, which is supposed to drop in Q4 2025 and could potentially boost the brand forward in terms of electronics, design, and software.
Now, a little heads-up here - the CEO and majority shareholder of the Börsenmedien AG, Mr. Bernd Förtsch, has got some financial skin in the game. He's invested in Porsche AG, which could benefit from any price changes resulting from this publication.
As for precise analyst insights from BNP Paribas Exane regarding recovery timelines or specific challenges in the EV market, you might want to check out their official reports or publications for a more detailed analysis. Enjoy the ride, folks!
The financial analysts at BNP Paribas Exane have issued negative outlooks for BMW's performance, downgrading its rating from "Neutral" to "Underperformance."
These analysts have also projected a challenging future for Porsche, highlighting Porsche AG, where the CEO of Börsenmedien AG Bernd Förtsch also has significant financial investments.
