Oddo BHF maintains its neutral rating on BMW shares, with a price target reduced from €95 to €90.

Yesterday, BMW published Q2 results that were broadly in line with the overall picture, but slightly lower for Auto EBIT (-2% vs. css).

"We remain in line with our guidance of an acceleration in volumes in H2 (Mini, 5 Series), with a stable H2 margin compared with H1, an achievable objective but one that leaves no margin for any further deterioration in the environment", says the analyst, who refers to "an erosion of the Auto margin, both on an annual and sequential basis" that is "not reassuring".

According to the Chinese press, BMW could pull out of the price war raging in the country, having found that the price cuts have not particularly stimulated demand, and have only created a wait-and-see attitude among customers.

Oddo BHF believes that the next few months will be important in assessing the success of this new strategy.


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