BMW Stock Outlook Mixed: JP Morgan Maintains 'Buy', Jefferies Downgrades to 'Hold'
BMW's stock outlook remains positive despite short-term challenges, according to JP Morgan. The US bank maintains a 'Buy' rating with a price target of 89 euros. Meanwhile, Jefferies has downgraded BMW to 'Hold', citing concerns about market defense in the stock market and margin pressure.
On October 15, 2025, JPMorgan published an analysis maintaining an 'Overweight' rating for BMW, expecting revenue and margin improvements despite lowered profit estimates for 2025/26. However, Jefferies' 2025 EBIT forecast for BMW has shrunk by nine percent to 9.4 billion euros, with the core automotive business expected to reach 6.2 billion euros, a twelve percent cut.
Jefferies' concerns include aggressive market defense in the stock market with costly dealer subsidies, complex trade challenges weighing on margins, and short-term planning uncertainty. Despite these concerns, BMW is expected to present its Q3 results on November 5, which may provide clarity on the company's strategy and stock recommendation. Jefferies predicts BMW's automotive revenue for Q3 to be 29.4 billion euros, a 5.6 percent increase driven by strong US business and stabilization in the stock market, but expects a margin of only 4.3 percent, indicating current margin pressure.
BMW's stock outlook varies among analysts. While JP Morgan maintains a positive view, Jefferies has downgraded BMW to 'Hold' due to short-term challenges. Upcoming Q3 results on November 5 are expected to provide more clarity on the company's strategy and stock recommendation.
