Berenberg Cuts Mercedes-Benz Group Price Target, Estimates Amid Reduced FY26 Sales Guidance

12:19 PM EDT, 07/29/2026 (MT Newswires) -- Berenberg adjusted its price target and estimates for Mercedes-Benz Group (MBG.F) amid a model update after the German automaker delivered a "supportive" set of second-quarter results. "Q226 margins for the Cars division came in materially ahead of consensus, at the mid-point of the 3-5% margin guidance for FY26, which is supportive even if cost headwinds are set to accelerate in H2 (due to fixed-cost seasonality, higher BEV dilution, and D&A activation from product launches). 2026 remains a transition year, with the combined impact of the 'premiumisation' strategy, restructuring benefits and China product/cost repositioning only to be felt materially from 2027/28," analysts wrote in a note published Wednesday. "Nonetheless, we acknowledge that MB's track record in generating cash (organically and/or via M&A) remains undisputedly strong, boosting the 2026 distribution yield to a supportive c13% (of which c11% has already been distributed ytd), 'buying some time' before margins recover." The group's full-year 2026 revenue is now anticipated to be "slightly below" the prior year's level, against the earlier guidance of revenue remaining at the same level, amid continued weakness in China. As such, sales and EPS estimates for 2026 were respectively lowered by 2.1% and 6.9%. The forecasts for both metrics were also downwardly adjusted for 2027 and 2028. The price target was reduced to 56 euros from 60 euros, with an unchanged hold recommendation on the stock.