Jefferies downgraded Mercedes-Benz on Monday, cutting its recommendation from “Buy” to “Hold” and trimming the price target to EUR 44 from EUR 46. Analyst Philippe Houchois pointed to the need for a far-reaching overhaul of the company’s business model, a thinner liquidity profile and a lack of visibility on whether the share buyback will be renewed. The stock had closed at EUR 40.67 on Friday, up 0.3%.
The Stuttgart group is pressing ahead with its own capital returns in the meantime. Mercedes-Benz reported the purchase of roughly 567,000 of its own shares between 2 and 6 November. Since the programme began on 1 September, buybacks have reached about 7.96 million shares.
Aluminium Sourcing Tied to Climate Criteria
On the supply side, the carmaker joined the First Movers Coalition on Tuesday, committing to source at least 10% of its annual primary aluminium needs under the initiative’s criteria. A separate agreement with Hydro sets out a step-by-step reduction in the CO₂e footprint of primary aluminium: down to 3.5 kilograms of CO₂ equivalents per kilogram by 2028, and 3.0 kilograms per kilogram from 2030. The moves are part of a broader effort to decarbonise the supply chain.
Labour Talks Show No Sign of Movement
Back at home, negotiations with employee representatives over lower labour costs produced no discernible progress, according to Handelsblatt. The paper also reported that key investment decisions on the next model generation are due before the end of the year.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Chief executive Ola Källenius demanded sweeping changes on Wednesday to lift productivity and bring down labour costs in Germany, rejecting what he called a “lazy compromise.” In an interview with the “Neue Osnabrücker Zeitung” on Thursday, he defended the savings drive, citing energy, production and labour costs as well as regulatory burdens as competitive factors. Where future products and investment are allocated could, he said, depend on costs at the individual sites.
IG Metall and the works council pushed back firmly on Thursday, with works council chief Ergun Lümali ruling out plant closures and pledging that the employee side would fight to keep the German sites.
Ad
Mercedes-Benz Stock: Buy or Sell?! New Mercedes-Benz Analysis from November 14 delivers the answer:
The latest Mercedes-Benz figures speak for themselves: Urgent action needed for Mercedes-Benz investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 14.
Mercedes-Benz: Buy or sell? Read more here...
