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(CercleFinance.com) – Oddo BHF maintains its ‘underperformance’ rating on Mercedes-Benz shares with a clearly raised price target of 50 to 60 euros.
After the ‘mixed’ quarterly results announced yesterday, Oddo BHF believes that management has not been particularly reassured about the erosion of fundamentals, ‘on the contrary’.
However, the good news was in terms of capital allocation, with the announcement of a new share buyback plan with ‘generous’ shareholder value returns.
The manufacturer announced a new share buyback plan of 3 billion euros, widely expected given the healthy financial situation (32 billion euros at the end of 2023) and similar announcements in the sector (Stellantis, GM in particular).
Thus, the new shareholder value return policy should guarantee a total return (dividend + buybacks) of ~E9 billion for at least a few years unless there is a major deterioration, i.e. a return of ~12% on the current price.
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