Citi cut its target price on Mercedes-Benz Group to 42 euros from 51 euros and said the automaker's 2026 full-year passenger car EBIT margin could fall below 3%. According to Sina Finance, the bank said European automakers face mounting profit pressure in the second half of 2026, with China weakness, rising EV penetration in the EU, global price competition, higher raw material costs, rising interest rates, and weaker fuel-car residual values all weighing on earnings.

Citi also lowered its optimistic scenario target price to 70 euros from 75 euros and its pessimistic scenario target price to 30 euros from 40 euros. It said Mercedes-Benz's current share price of about 40 euros is already close to its new base-case target, and that the company's 2027 earnings recovery may be weaker and slower than previously expected.