While maintaining its 'hold' position on Mercedes-Benz, Stifel is raising its price target from €65 to €71, in order to incorporate an accretive effect from the German automaker's current share buybacks.

"Cash generation remains Mercedes' key strength, and both management and the supervisory board are demonstrating their commitment to generating shareholder value", says the broker, for whom operating momentum remains negative.

Adjusting for the consolidation of the Chinese joint venture and the capitalization of R&D, Mercedes was less profitable than BMW in the third quarter, a trend that shows no sign of reversing in the first quarter of 2024', it warns.

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