RBC cuts Mercedes-Benz target to EUR 44 for Mercedes-Benz stock

Published on 10/22/2026 at 10:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

The group sold 491,700 vehicles in Q3, down 6 percent. Mercedes-Benz stock costs EUR 40.88 on October 22, 2026, below the Xetra close.

Mercedes faces a margin test

RBC cut its Mercedes-Benz target from EUR 54 to EUR 44 on October 13, 2026.
Mercedes-Benz sold 491,700 cars and vans in the third quarter, down 6 percent year over year.
Mercedes-Benz stock trades at EUR 40.88 at 10:02 a.m. CEST at Lang & Schwarz on October 22, 2026, 0.39 percent below the Xetra close of October 21, 2026.
Cars adjusted return on sales was 4.0 percent in the second quarter, within the 3 percent to 5 percent guidance range.

Draufsicht auf braune Lederhandschuhe, generischen Autoschlüssel, Tachometer-Detail und Kompass auf dunklem Schiefer — Flatlay mit Lederhandschuhen, Autoschlüssel, Tachoanzeige und Straßenkarte auf Schiefer. Mercedes-Benz Group AG, ISIN DE0007100000, Illustration mit AI erstellt.

Mercedes-Benz (ISIN DE0007100000) stock was trading at EUR 40.88 at Lang & Schwarz on October 22, 2026 at 10:02 a.m. CEST, 0.39 percent below the Xetra close of October 21, 2026 at EUR 41.04. RBC cut its Mercedes-Benz price target from EUR 54 to EUR 44 on October 13, 2026, while keeping its Sector Perform rating, according to MarketScreener.

RBC target cut sets the tone

The target reduction reflects pressure on Mercedes-Benz's Chinese business and the risk that automotive margins fall below the company's 3 percent to 5 percent range, RBC analyst Tom Narayan wrote. The cut leaves the target 7.66 percent above the Lang & Schwarz price, a gap that depends on a recovery in earnings rather than on the current sales trend.

Mercedes-Benz reported 491,700 cars and vans sold in the third quarter, down 6 percent from the prior-year quarter, while battery-electric vehicle sales across Cars and Vans rose 52 percent, according to Mercedes-Benz Media on October 7, 2026.

What does China mean for margins?

The second-quarter figures show why China is central to the next test. Revenue fell 3 percent year over year to EUR 32.10 billion, while reported EBIT rose 22 percent to EUR 1.55 billion and net income increased 13 percent to EUR 1.09 billion, according to Seeking Alpha on October 20, 2026. Cars adjusted return on sales was 4.0 percent in the second quarter, inside the 3 percent to 5 percent full-year guidance range, according to Admirals.

Three dates mark the pressure

On October 7, 2026, Mercedes-Benz disclosed third-quarter group sales of 491,700 vehicles, down 6 percent year over year. On October 13, 2026, RBC cut its target from EUR 54 to EUR 44. On October 22, 2026, the stock stood at EUR 40.88, 0.39 percent below the October 21 Xetra close of EUR 41.04.

The next dates matter

Mercedes-Benz is scheduled to publish its third-quarter 2026 results and hold the related analyst conference call on October 28, 2026. Its investor-relations calendar also lists a Sustainability Update for November 10, 2026, according to the Mercedes-Benz investor-relations page. The report should clarify whether the 4.0 percent Cars margin can remain above the lower end of guidance as China weighs on volumes.

Stock stays below the yearly midpoint

The current quote sits within the EUR 38.89 to EUR 62.34 52-week range and gives Mercedes-Benz a market capitalization of EUR 39.2 billion as of October 22, 2026. Mercedes-Benz stock was trading at EUR 40.88 at Lang & Schwarz on October 22, 2026 at 10:02 a.m. CEST, 0.39 percent below the Xetra close of October 21, 2026 at EUR 41.04. The further course of trading is shown by the continuously updated real-time quote of Mercedes-Benz stock.