BMW Upgraded to Buy as Berenberg Notes 'Solid' Cash Generation, Shareholder Return Potential

06:55 AM EDT, 09/17/2026 (MT Newswires) -- Berenberg upgraded its rating on BMW (BMW.F) to buy from hold, noting the German automaker's "solid" potential for cash generation and higher shareholder returns in an automotive sector-focused report published Wednesday. "While structural challenges in China have not disappeared - although early Chinese pre-order data for the new iX3 appear promising - the sizable China-driven profit warning last June now provides a much sounder earnings base ahead of the late-September capital markets day (CMD). BMW equity may now shift back to its key strengths: 1) improving the P&L contribution from the Neue Klasse platform, alongside solid upcoming product momentum; 2) untapped potential for cost savings and efficiency gains amid lower volume growth; and 3) credible evidence that R&D/capex has passed its peak, supporting cash generation, while a solid balance sheet underpins shareholder returns," analysts said, increasing the stock's price target to 75 euros from 69 euros. The research firm also sees the possibility of BMW boosting its current dividend payout ratio of between 30% and 40% for 2027 and 2028, while share buybacks could become recurring. Meanwhile, analysts reduced their sales, EBIT and EPS estimates for 2026 through 2028 amid persistent market challenges in China.