Deutsche Bank sees Mercedes-Benz margin below guidance

1244 GMT - Mercedes-Benz could report a third-quarter adjusted cars EBIT margin below the company's full-year guidance range of 3%-5%, Deutsche Bank analyst Tim Rokossa writes. Car sales volumes declined 8% on year in the quarter, primarily driven by a 31% drop in China, while Europe and the U.S. delivered mid-single-digit growth, Rokossa says. The mix development was also unfavorable, with top-end vehicles down 21% on year compared with declines of 6% and 4% for the core and entry segments, respectively. "In addition to lower volumes and weaker mix, we expect profitability to be weighed down by higher raw material costs, increased depreciation and amortization, and elevated supplier-related expenses." The bank rates Mercedes-Benz stock at buy with a 70-euro target price. Shares rise 1.7% to 39.69 euros. (dominic.chopping@wsj.com) (END) Dow Jones Newswires October 09, 2026 08:44 ET (12:44 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.