BMW Stock: Shares Rally Despite Weak Q3 Performance

BMW shares demonstrated remarkable strength on Friday, climbing 2.7% to reach €77.02, positioning the automaker among the top performers in Germany's leading stock index. The surge occurred despite challenging third-quarter results, where earnings per share plummeted to €0.63 from €4.21 year-over-year, accompanied by a 15.74% revenue decline to €32.41 billion. This upward momentum aligned with broader market optimism that pushed the DAX to a new record high of 20,426 points, with the automotive sector emerging as the strongest performer among European sectors, gaining 1.9%.

Analysts Project Strong Recovery

Market experts maintain an optimistic outlook for BMW's future performance, setting an average price target of €86.75, suggesting significant upside potential. This positive sentiment stems from growing expectations of an economic recovery in 2025, prompting investors to re-enter the automotive sector after recent pressures. Analysts project earnings per share of €12.73 for the full year 2024, reflecting confidence in BMW's ability to overcome current challenges and capitalize on anticipated market improvements.