Citi lowered the target price of Mercedes-Benz from 51 euros to 42 euros, saying that European automakers' profit pressure will continue to increase in the second half of 2026, and that the company's profit margin before interest and tax for the passenger car business will fall below 3% for the full year of 2026. Citi pointed out that the further weakening of the Chinese market, the increase in the penetration rate of electric vehicles in the EU, the intensification of global price competition, and the rise in raw material costs are the main pressures. Rising global and EU interest rates and worsening fuel vehicle residual values will also drag down profits. The agency also lowered the target price for the optimistic scenario from 75 euros to 70 euros and the target price for the pessimistic scenario from 40 euros to 30 euros, and it is expected that the company's profit recovery for the 2027 fiscal year may be weaker than previously anticipated. However, Citi believes that most of the negative expectations have already been reflected at a stock price of about 40 euros.

Citi lowered the target price of Mercedes-Benz from 51 euros to 42 euros, saying that European automakers' profit pressure will continue to increase in the second half of 2026, and that the company's profit margin before interest and tax for the passenger car business will fall below 3% for the full year of 2026. Citi pointed out that the further weakening of the Chinese market, the increase in the penetration rate of electric vehicles in the EU, the intensification of global price competition, and the rise in raw material costs are the main pressures. Rising global and EU interest rates and worsening fuel vehicle residual values will also drag down profits. The agency also lowered the target price for the optimistic scenario from 75 euros to 70 euros and the target price for the pessimistic scenario from 40 euros to 30 euros, and it is expected that the company's profit recovery for the 2027 fiscal year may be weaker than previously anticipated. However, Citi believes that most of the negative expectations have already been reflected at a stock price of about 40 euros.