Mercedes-Benz Stock: Major Banks Cut Ratings Amid Market Pressures

Mercedes-Benz shares are facing significant downward pressure following multiple rating downgrades from prominent financial institutions. A British investment bank has notably slashed its price target from 65 to 48.50 euros, shifting its rating to "underweight." Similarly, Swiss banking giant UBS has revised its stance from "buy" to "neutral," reducing its price target from 72 to 55 euros. These adjustments reflect mounting concerns about Mercedes-Benz's market position, particularly in China and the United States. Analysts cite intensifying competition in the premium segment, stricter emissions regulations, and potentially underestimated costs associated with electric vehicle transition as key factors behind their revised outlooks.

Share Buyback Program Completion

Despite market headwinds, Mercedes-Benz has successfully concluded its share buyback initiative, purchasing approximately 46 million shares at an average price of 60.95 euros between May and November 2024. The program, totaling around 2.8 billion euros, represents a significant investment in the company's stock. Combined with previous buyback efforts, the company has now acquired roughly 10 percent of its share capital.