HSBC maintains its 'Hold' rating on the BMW stock with an unchanged target price of €77.
We believe that downside risks are limited at current levels and are therefore maintaining our 'Hold' rating, the analyst said.
HSBC adds that the automotive EBIT margin for Q2 is expected in a range of 5% to 7% for fiscal 2025 (HSBC forecast at 4.5% and Visible Alpha consensus at 4.7%).
The company expects a significant decline in operating profit (EBIT) in Q2, impacted by tariffs and an unfavorable volume-price mix.
Cash flow from the automotive sector in the second quarter is expected to be significantly higher than in Q1. The forecast for FY 2025, which anticipates cash flow from the sector to exceed €5bn, remains unchanged, HSBC notes.
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Bayerische Motoren Werke AG (BMW AG) specializes in the design, construction and marketing of luxury cars. Net sales break down by activity as follows:
- vehicle sales (73.2%): 2,463,681 units sold in 2025, under the following brands: BMW 2,169,739), MINI (288,278) and Rolls-Royce (5,664);
- sale financing services (24.8%);
- motorcycle sales (2%): motorcycles with 650-1200 cm3 displacement (202,563 units sold under the BMW brand).
At the end of 2025, the group had 33 production sites worldwide.
Net sales are distributed geographically as follows: Germany (13.9%), Europe (30.8%), China (18.6%), Asia (10.3%), United States (20.2%), Americas (3.8%), and other (2.4%).
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