(News Bulletin 247) – Goldman Sachs downgraded its recommendation on BMW shares on Thursday, reduced from ‘buy’ to ‘neutral’ with a price target reduced from 113 to 109 euros.
In a study devoted to the European automotive sector, the analyst explains that the German manufacturer should still benefit from a solid financial year in 2023, thanks in particular to the launch of the new 5 Series and the i5.
The intermediary, however, believes that BMW’s success in electromobility is not without pain, especially in view of the surge in its capital expenditure in the short term.
With a price target showing only 8% upside potential, against a median of 18.6% for the sector, Goldman prefers to downgrade its advice on the stock, which has risen 5.4% since its entered the analyst’s buy list in January 2022, compared with a decline of 11.9% for the STOXX Europe 600 Automobiles & Parts index.
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