The pressure is on: Should investors now pay attention to Mercedes-Benz and BMW shares?

Chinese manufacturers continue to put pressure on their European competitors. The next few weeks could be interesting for Mercedes-Benz and BMW shares.

The price war may continue. Growing exports of electric vehicles from Chinese manufacturers, which accounted for more than half of all sales in 2023, could increase pressure on car prices, according to an assessment by the International Energy Agency (IEA) published on Tuesday. According to the news, Chinese companies with production facilities abroad have achieved large sales in foreign markets.

This would make it clear that the production of electric cars is located in different parts of the world than the traditional car industry. This is not good news, especially for automakers like BMW, which rely heavily on electricity. But other competitors such as Mercedes-Benz are also likely to watch this development with concern. Especially since both stocks are already facing challenges in the first quarter reporting season.

Is BMW stock the weakest?

BMW is expected to comment on the business results of the last quarter on May 8. Two analysts are forecasting an average profit per share of EUR 4.09 instead of EUR 5.31 as in the same quarter last year.

The outlook of 20 analysts for this fiscal year is also the same as the average earnings per share of 16.86 euros. In the same period last year, this value was 17.67 euros. Based on the statistical results, the stock price may weaken slightly in the short term, but the long-term prospects of the car maker remain unaffected at this time.

Jefferies rates Mercedes-Benz

The same applies to Mercedes-Benz. Analysis house Jefferies still recommends buying the stock with a price target of 100 euros, but also calls for caution, at least in the short term. Strong price growth since the beginning of the year and average business in the first quarter should cause caution before the figures are presented, according to a study on car values ​​in Europe and the USA published on Monday.

With material from dpa-AFX

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