FRANKFURT (dpa-AFX) - BMW shares recovered somewhat from their four-year low on Tuesday following an analyst recommendation. The Munich-based company's shares gained up to 1.1 percent, but remain almost a third under water in 2024. Javier Martinez de Olcoz Cerdan from Morgan Stanley not only upgraded BMW to "overweight", but also the sector to "in-line", thus abandoning his entirely skeptical stance.

According to the expert, the pressure on margins from Chinese manufacturers continues to increase. However, the below-average development of the sector has also pushed up valuations. The customs risks are now better understood and could even lead to regulatory relief, for example with regard to CO2 emissions or claims. Ultimately, cost-cutting measures could result, making the groups leaner and more competitive.

The Morgan Stanley expert's favourite is Mercedes Benz, whose shares have stabilized at the low since 2022. The shares of Porsche AG and Volkswagen also held up well on Tuesday in a weak overall market./ag/mis