Mercedes-Benz Stock: Jefferies Raises Target Despite Challenges

Mercedes-Benz shares gained 1.0% on Monday, reaching €58.96 on XETRA trading, after Jefferies raised its price target from €60 to €65 while maintaining a "hold" rating. The stock climbed to a daily high of €59.56, showing positive momentum despite trading approximately 31% below its 52-week high of €77.45 recorded in April. Analysts cite several challenges facing the Stuttgart-based automaker, including BMW's competitive advantage with its "New Class" vehicle concept launching in late 2025, while Mercedes' model refresh is primarily scheduled for 2027. Nevertheless, Mercedes-Benz demonstrates strong financial fundamentals, trading at 7.3 times earnings with an attractive dividend yield of 5.8% and a free cash flow yield of approximately 10%.

Cost-Cutting Measures Intensify

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Mercedes-Benz?

The luxury automaker is ramping up its cost reduction initiatives with particularly generous severance packages for administrative staff. Reports indicate potential payouts exceeding €500,000 per employee as part of what industry insiders describe as a "golden handshake" strategy. These measures align with the company's broader effort to reposition itself amid what executives characterize as a "massive transformation" of the global economy. Meanwhile, Mercedes-Benz continues advocating for open markets internationally, especially regarding its operations in China. The company's position on trade issues is evidenced by its legal challenge against EU tariffs on Chinese-manufactured electric vehicles, underscoring the significance of the Chinese market to its global strategy.