Shares in German automaker BMW fell just over 2 percent on Thursday and traded around their lowest level in six years after cautious analyses from HSBC and UBS ahead of the company’s capital markets day. Investing.com reports.
HSBC has downgraded its recommendation to Hold from Buy and expects BMW’s sales in China to fall by approximately 25 percent this year and a further 4 percent in 2027.
The bank simultaneously lowered its forecasts for operating profit in 2027-2028 by 16-20 percent.
UBS estimates that BMW may set a target for the automotive business’s EBIT margin of 3-5 percent for 2028, below the consensus estimate of 5.1 percent.
To meet the forecast, UBS estimates that BMW will need cost savings of around 2.3 billion euros during 2027–2028.
