Metzler Starts Mercedes-Benz Coverage at Hold Amid Continued High Exposure to China

12:08 PM EDT, 09/22/2026 (MT Newswires) -- Metzler Capital Markets initiated its coverage of Mercedes-Benz Group (MBG.F) with a hold rating, noting that the German automaker's exposure to China is still high and poses a downside risk to margins. "The positives and the negative aspects of the investment case are both strong. On the one side, an exceptional brand, a shareholder value oriented management (the only 100% free-float OEM in Europe), EUR33bn net cash (including pensions), more proceeds from asset sales. On the other side, Mercedes still has the highest sales exposure to China among peers and it is still more dependent on ICE cars than BMW. China & ICE are profit pools that are set to decline further," analysts said. The research firm also highlighted that the automotive industry faces global overcapacity in deglobalized markets, adding that Mercedes-Benz is particularly exposed to rising trade barriers, as well as differing consumer preferences and regulatory frameworks. "We believe Mercedes has fully acknowledged the challenges and is acting accordingly. However, adopting to smaller/deglobalized markets, to tariffs and new competitors takes time. Mercedes and BMW benefitted most from globalization, they now need to digest the partial reversal," Metzler noted, setting the price target for Mercedes-Benz at 47 euros.