Shares of German automaker BMW rose in price after HSBC analysts upgraded the company’s stock recommendation from “hold” to “buy.” At the same time, the bank raised its target price to €71, implying upside potential of about 21% from the previous session’s closing level. Analysts noted that most negative factors have already been priced in by the market and the company’s outlook is beginning to improve.
Why HSBC improved its outlook on BMW shares
HSBC analysts revised their view on BMW after a significant decline in the share price since the start of the year. The company’s updated forecast already reflects weak demand in the Chinese market, which remains one of the key factors weighing on the financial results of European automakers.
HSBC Holdings plc is one of the world’s largest international banks and financial holding companies, headquartered in London. The bank provides banking, investment, and analytical services in more than 50 countries and regularly publishes recommendations and target prices for shares of the world’s largest companies.
HSBC also sees the business restructuring program and the launch of the new Neue Klasse electric lineup as additional drivers of a recovery. Freedom Broker previously noted that this project will form the basis of BMW’s next generation of electric vehicles, reduce production costs, increase range and battery efficiency, and accelerate software development. The launch of Neue Klasse is expected to help the company restore sales growth and strengthen its position in the premium EV segment.
About BMW
BMW AG is one of the world’s largest manufacturers of premium vehicles. The company produces cars under the BMW, MINI, and Rolls-Royce brands and is also actively investing in the development of electric vehicles and digital technologies. The Neue Klasse strategy is a key stage in the transformation of BMW’s business and is expected to become the foundation of the company’s next generation of electric vehicles.
BMW shares outlook after HSBC’s upgrade
Freedom Broker analyst Vladimir Chernov believes that HSBC’s upgrade of BMW indicates that most negative expectations have already been reflected in the share price, which has fallen by about 37% since the start of the year.
According to the expert, the company’s updated forecast now more realistically accounts for weak demand in China. Vladimir Chernov expects the upgraded recommendation to provide short-term support for BMW shares. At the same time, to form a sustainable upward trend, the company needs to confirm strong demand for new models—primarily the electric iX3—and also demonstrate stabilization of sales in the Chinese market.
A key factor for investors will be the upcoming financial statements, which will show how operational changes can translate into profit growth.
Other BMW news Freedom Broker is following
Earlier, we wrote that BMW warned investors about a possible decline in profit in 2026. The company lowered its forecast for automotive business profitability from 4–6% to 1–3% and also expects a slight decrease in vehicle deliveries by year-end.
Competition in the world’s largest car market continues to intensify. Earlier, we reported that Chinese premium automaker Seres surpassed BMW for the first time on a number of market indicators, providing further confirmation of growing pressure from local brands.
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