BMW is down more than 1% in Frankfurt, after Oddo BHF confirmed its neutral rating on the stock, with a price target reduced from €95 to €90.

The automaker published quarterly results yesterday before trading that were broadly in line with the overall picture, but slightly down on 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 to H1, an achievable objective but one that leaves no margin for a possible further deterioration in the environment", says the analyst, who refers to "an erosion of the Auto margin, on an annual and sequential basis" that "is not reassuring".

According to the Chinese press, BMW could disengage from the price war raging in the country, having found that these 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 to follow in order to judge the success of this new strategy.


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