Berenberg Trims Price Target for Mercedes-Benz Amid Persistent China Pressures; Hold Rating Kept

05:37 AM EDT, 09/17/2026 (MT Newswires) -- Berenberg trimmed its price target for Mercedes-Benz Group (MBG.F) while reiterating its hold rating, citing "lacking" near-term catalysts amid ongoing market headwinds in China. "While product momentum clearly accelerates in 2026-27, with numerous (and potentially margin-accretive) product launches in both Cars and Vans, China momentum (where we expect a continued loss of volumes and pricing) remains challenging," according to a Wednesday research report focused on the automotive sector. The research firm noted the expanding spread between the group's reported and adjusted EBIT across 2025 and 2026 due to rising one-off restructuring costs, which it said signaled management's efforts to trim costs. Analysts also still view the German automaker's 6 billion-euro cash generation as "achievable," although they expect the mix to shift toward mergers and acquisitions and asset disposals rather than organic cash flow. "However, the associated cash outflows will start weighing on [free cash flow] in H2 2026 and 2027. More drastic China capacity restructuring actions may also come (after the [sizable] - non-cash - China strategic impairment booked in Q2 2026)," the note said. Against this backdrop, Berenberg lowered the stock's price target to 52 euros from 56 euros.