BMW Stock: Shares Rally Despite Lower Dividend Forecast

BMW's stock demonstrated remarkable strength in XETRA trading, climbing more than 2% to €79.40, marking a significant recovery of 21.08% from its 52-week low of €65.26. This upward momentum comes as the automotive giant maintains a confident stance on meeting its 2025 CO2 targets, while competitors advocate for deadline extensions. The company's strategic approach, implemented since 2019, combines electric mobility initiatives with optimized combustion engines to reduce average emissions from 115.1 to 93.6 grams per kilometer in new vehicles. Analysts remain optimistic, projecting a fair value of €86.75 per share.

Financial Outlook

Despite the positive market performance, BMW investors face an anticipated reduction in dividend payments, with experts forecasting a decrease from €6.00 to €4.64 per share for the upcoming year. The company's recent quarterly results reflect some challenges, with earnings per share declining to €0.63 from €4.21 year-over-year, alongside a 15.74% revenue decrease to €32.41 billion. However, analysts maintain a positive outlook, predicting earnings of €12.73 per share for 2024.