jax10289
Dear readers/followers,
I've been a fairly heavy investor in Mercedes-Benz Group AG (OTCPK:MBGAF) for a number of years now. The company, like many automotive manufacturers in Germany that I also invest in such as Volkswagen AG (
Mercedes-Benz: Why The Company Is Undervalued Here
Summary
- Mercedes-Benz faces challenges with declining premium car demand and competition, particularly in China, but remains a premium brand with strong fundamentals and potential for recovery.
- Despite a tough 3Q24 and guidance for 2024, Mercedes's strategic focus is on profitability, quality, and new investments like MB.OS and battery recycling show promise.
- Valued below €57/share, Mercedes is significantly undervalued with a potential upside to €85/share, making it an attractive "Buy" for long-term investors.
- Mercedes fulfills key investment criteria: qualitative brand, fundamentally safe, well-covered dividend, and high upside potential, despite current market pressures and EV margin concerns.
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