BMW got a vote of confidence from HSBC on Friday, with the bank lifting its rating on the German automaker to “buy” from “hold.”
The stock climbed 0.9% to EUR 58.84, holding up better than the broader DAX, which dropped 0.4% on the day.
Bayerische Motoren Werke AG, BMWYY
HSBC held its price target steady at EUR 71 — implying around 21% upside from where the stock closed on Thursday.
The bank’s case is straightforward: BMW has already taken a beating. The stock is down 37% year-to-date, and HSBC believes that fall has largely absorbed the bad news from China and weaker earnings momentum.
BMW’s lowered guidance, HSBC said, now more accurately reflects what’s happening in China — and reduces the chance of further profit warnings coming as a nasty surprise to investors.
The bank also pointed to early customer demand for the new iX3 as a signal that BMW’s product strategy is holding up, despite the difficult environment.
HSBC flagged two things it expects to drive a gradual recovery: planned restructuring measures and the rollout of the Neue Klasse vehicle platform.
The new platform is BMW’s bet on the premium electric vehicle market, and HSBC believes it can improve the company’s competitive position over time.
BMW’s automotive net cash position was also highlighted as giving the company room to return more cash to shareholders down the line.
On the personnel side, BMW confirmed on Thursday that Dorothea von Boxberg will join its board as head of human resources from September 1.
Von Boxberg is currently CEO of Brussels Airlines and has held senior roles at Lufthansa. She replaces outgoing HR chief Ilka Horstmeier.
Supervisory board chair Nicolas Peter said she brings “an outside-in perspective” on the industry — language that suggests BMW wants fresh thinking on how to restructure its workforce.
CEO Milan Nedeljkovic said the company faces “new challenges that require consistent adjustment of our structures and ways of working.”
The hire comes after BMW issued a profit warning last month — its first under Nedeljkovic — and committed to further cost-cutting.
BMW’s margins are expected to fall as low as 1% this year, a sharp drop that rattled investors and prompted the leadership reshuffle.
Unlike Volkswagen and Mercedes-Benz, BMW has not announced sweeping job cuts. But the appointment of an HR chief with a transformation background sends a clear signal about where the company is headed.
BMW and staff representatives were preparing to enter talks to accelerate efficiency measures following the profit warning.
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