Analyse Mercedes-Benz Group (ex Daimler) stock

Plausibility check:
Although the consensus price target of EUR 60.43 is generally within a reasonable range, it appears a bit too optimistic based on the current cyclical risks, weaker car demand, China exposure and limited short-term profit visibility.

Quantitative:
The current price of EUR 45.24 implies up to 60.43 EUR an upside potential of around 33.6%. This is ambitious for a mature, cyclical OEM with an already low valuation. The P/E ratio of 7.93 signals undervaluation, but is structurally common for car manufacturers due to cyclicality and capital intensity. Compared to its European peers, Mercedes looks fundamentally cheap to...