Background of the Buy Recommendation
Deutsche Bank maintains its buy recommendation for Mercedes-Benz stock. Despite discussions about potential new US tariffs on European car imports, the bank’s outlook remains positive. Key factors include:
- Stable US Demand: Demand for Mercedes-Benz vehicles in the USA remains stable. Deutsche Bank sees no negative impact on Mercedes-Benz despite tariff uncertainties.
- Resilience to Geopolitical Uncertainties: Mercedes-Benz is seen as resilient to geopolitical challenges, which is attractive to investors.
- Solid Positioning in the North American Market: In the first quarter of 2025, Mercedes-Benz increased car sales by one percent in the USA.
Price Target and Valuation
Deutsche Bank has set a price target for the Mercedes-Benz stock at 90 euros, which implies a potential price increase of about 65 to 70 percent, as the current price is around 54 euros.
Current Developments
Although sales in China fell by ten percent, Deutsche Bank does not see this as a significant risk factor. Upcoming Q2 2025 figures, to be published on July 30, could provide further insights.
In summary, the Mercedes-Benz stock remains an attractive investment opportunity as the company continues to be strong and resilient in key markets.