Mercedes-Benz Stock: Share Price Slides Amid Profit Concerns

Mercedes-Benz shares experienced a significant downturn in recent trading, with the stock price dropping to €53.54, marking a 1.5% decline. This latest setback adds to the company's challenging year, as shares have already lost approximately 14% of their value since January. The current price represents a considerable distance from the 52-week high of €77.45 recorded in April 2024. The Stuttgart-based automaker's financial performance has shown concerning trends, with quarterly revenues declining by 7.18% to €34.53 billion, while earnings per share dropped substantially from €3.44 to €1.66 compared to the previous year.

Market Outlook Analysis

While analysts maintain an average price target of €69.05, market sentiment suggests potential headwinds for the luxury car manufacturer. The company's profitability targets are under scrutiny, with discussions centered around revising the previous 14% return target. However, market observers note that Mercedes-Benz has already communicated a differentiated profitability range of 8-10% for less favorable market conditions, suggesting that some adjustment to return expectations may already be factored into current market valuations.