Mercedes-Benz Shares Languish Near Yearly Low as Jefferies Defies Gloom with Upgrade
29.06.2026 - 17:35:13 | boerse-global.de
The Mercedes-Benz share price is clinging to the edge of its 52-week abyss, trading at around €43.30 after hitting a fresh low of €42.64 on June 29. Since the start of the year, the stock has shed nearly 30% of its value, weighed down by a string of disappointing earnings and a downturn in the broader automotive sector. Yet Jefferies has thrown a contrarian lifeline, upgrading the stock from "Hold" to "Buy" even as it cut its price target from €60 to €52.
The upswing in analyst sentiment rests largely on management’s assurances at a recent investor conference. CEO Ola Källenius and his team expressed confidence that the group’s 2026 financial targets remain within reach, underpinned by an aggressive cost-control drive. Jefferies analyst Philippe Houchois described the targets as "absolutely secure", a stark contrast to the market’s deep skepticism. The implied upside from current levels is about 20%, but the stock first needs to hold its technical floor.
That floor sits at €43.01, just a whisker below Friday’s close of €43.27. If that support gives way, chart watchers warn of further slides. The shares already trade more than 20% below their 200-day moving average of around €55. Still, the Relative Strength Index has dipped to 30.3, a level that historically signals an oversold condition and has often preceded a bounce.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
The operational picture is no less fraught. Mercedes-Benz’s profit halved in 2025, and the first quarter of 2026 saw another dramatic drop in operating earnings. The group has now embarked on a sweeping cost-restructuring program to defend its margins. Measures include ending the 35-hour workweek in production to allow more flexible shifts, deferring a planned bonus for the workforce until 2027, and cutting 72 jobs at its Long Beach, California, research centre as of July 6.
Broader headwinds are compounding the pressure. Germany’s economy stalled in the second quarter, incoming orders are shrinking across the industrial base, and recent profit warnings from rival BMW have rattled the sector. The market is also digesting news of job cuts at Volkswagen and BMW, fuelling demand concerns for premium automakers. Against that backdrop, Mercedes-Benz is fighting to keep its operating margin from eroding further.
The next major test comes with the second-quarter report, due in the coming weeks. Until then, the stock’s fate rests on whether the €43.01 level holds and whether Jefferies’ bold call proves prescient. For now, the gap between analyst optimism and market reality has rarely been wider.
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