Should Mercedes-Benz automobiles still be considered a wise investment, given the recently unfolded financial statistics have showed a drop of 50%?
Mercedes-Benz Stock: A Short-Term Buying Opportunity Amidst Q3 Losses
Despite reporting losses and reduced profits in the third quarter, Mercedes-Benz Group AG's stock may still be a viable option for short-term investors, according to recent analysis and market indicators.
The stock experienced a recent uptick, gaining 0.759% as of August 14, 2025, and showing potential for short-term performance improvement despite an overall falling trend [1]. This upward trend is further supported by technical analysis, which points to a "buy" signal issued in early August 2025 [3]. Since then, the stock price has risen over 9%, indicating bullish momentum supported by increased trading volume.
Forecasts predict trading between €56.78 and €65.78 over the next three months with a 90% probability, suggesting stability with upside potential [3]. MarketBeat notes a mixed consensus from Wall Street analysts who mostly rate Mercedes-Benz shares as "hold," reflecting caution but not outright sell sentiment. The consensus score is slightly lower compared to industry peers but does not reflect a strong sell recommendation [5].
However, it's important to note that Mercedes-Benz posted a drop in profits of over 50 percent in the third quarter, with profit falling to €1.72 billion [2]. This decline was due to weakness on the crucial market in China. Despite this, the group managed to generate a solid cash flow in challenging times.
Investors should also consider the downgraded profit forecast from Mercedes-Benz in September, which had already shaken the stock. However, the negative aspects in the stock's price are already reflected, reducing the risk of a major crash for invested shareholders.
Analysts from Bernstein have given an "Outperform" rating, while UBS has given a "Buy" rating for the stock. Bernstein and UBS advise continuing to buy the stock at price targets of €72.
In summary, while Mercedes-Benz posted losses and lower profits in Q3, the technical outlook and price momentum imply that the stock could represent a buying opportunity, particularly for short-term traders. However, investors should weigh this technical optimism against ongoing fundamental challenges.
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Business investors might find short-term potential in Mercedes-Benz stock, despite Q3 losses, as indicated by technical analysis and an upward trend in stock price. Personal-finance enthusiasts interested in investing might want to follow the recommended "buy" signals by analysts such as Bernstein and UBS, setting price targets at €72.
