FRANKFURT (dpa-AFX) - An analyst's change of favorites boosted BMW and weighed on Mercedes-Benz on Tuesday. Patrick Hummel of UBS switched from Stuttgart to Munich in his industry outlook for the year 2025. This was reflected in share prices: BMW rose by 1.1 percent on the Tradegate platform, while Mercedes-Benz fell by 1.6 percent. In addition, Mercedes shares were downgraded to negative by Barclays.

In his study, UBS expert Hummel assumes that the headwinds in the automotive sector will not abate in the coming year. However, he appreciates the improved free cash flow and the particularly attractive yield prospects resulting from the cash holdings at his new favorite BMW. The return prospects for Mercedes-Benz are also good, but he fears a dilutive effect from investments in electric vehicles, which are still underestimated. He also sees more risks for the Stuttgart-based company due to emissions regulations and the threat of US tariffs.

Barclays also commented on the outlook across the sector on Tuesday, but was particularly conspicuous on Mercedes-Benz with a downgrade to "Underweight". Expert Henning Cosman continues to take a neutral approach to the automotive sector following his recent upgrade of the sector vote, citing resilient earnings prospects as a key factor. In this respect, he favors the manufacturers of particularly high-quality cars such as Ferrari or Porsche, while he is concerned about business in China and the USA, which is reflected in a downgrade for Mercedes.

BMW is likely to build on the previous day's strength with gains on Tuesday, while the overall trend in the sector remains mixed. With Porsche AG and Volkswagen, the shares of the two carmakers represented in the DAX moved only moderately in the run-up. Experts expressed different opinions on Porsche AG: while Hummel gave up its buy recommendation for the sports car manufacturer, Cosman upgraded its shares to "overweight"./tih/bek/jha/