Mercedes-Benz Shares Near Floor as Jefferies Upgrade Clashes with Worker Rebellion
Published on 07/01/2026 at 21:44 | Redaktion boerse-global.de
Mercedes-Benz stock is trading within a whisker of its 52-week low, yet the market’s view of the automaker has fractured into two opposing camps. On one side, Jefferies has lifted its rating to “Buy,” arguing that the worst operational headwinds are already priced into the shares. On the other, the IG Metall union is mobilising 90,000 workers for a protest on 4 July against an aggressive cost-cutting push that threatens to upend long-standing pay agreements.
Jefferies raised the stock from “Hold” to “Buy” even as it slashed the price target from €60 to €52. The upgrade is not rooted in sudden optimism about demand, but in a belief that progress on restructuring – particularly fixed-cost reductions – is being overlooked. The analysts noted that Mercedes has already largely hit its fixed-cost targets for 2027, though material-cost savings remain behind schedule. UBS, by contrast, retains a “Neutral” rating with a €55 price target, reflecting lingering caution over the earnings trajectory.
The equity itself is barely budging. At €43.95, the share price has shed nearly 29% since the start of the year and sits roughly 20% below the 200-day moving average of €54.90. The 52-week low of €42.64, set on 29 June, is less than €1.40 away. Technical indicators show an oversold condition – the relative strength index stands at 33.3 – but fundamental pressures continue to override any chart-based signal of a rebound.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
The labour unrest adds a volatile new dimension. In an internal memo last week, the board described the situation in Germany as “dramatic” and announced the postponement of a so-called transformation payment for approximately 90,000 of the company’s 108,000 German employees. The payment, equivalent to 18.4% of monthly salary, had been contractually agreed under the existing collective bargaining framework and will now be pushed back to 2027. Meanwhile, supervisory board chairman Martin Brudermüller floated the idea of returning to a 40-hour working week without wage compensation – a move the IG Metall has vowed to resist, warning that decades of negotiated gains are at risk.
The cost-cutting imperative is rooted in weak first-quarter numbers. Operating profit tumbled 17% to €1.9 billion, and the adjusted return on sales in the car division landed at 4.1% – the low end of the full-year guidance range. Luxury demand has softened, particularly in China, and heavy investments in electric vehicles continue to weigh on margins. Nevertheless, management maintains a target for full-year earnings above the prior-year level.
Restructuring efforts are also visible outside the core industrial footprint. From 1 July, Mercedes-Benz reorganised its Bavarian sales leadership, merging the operations in Munich, Augsburg and Nuremberg to present a more unified front. On the factory floor, cost discipline remains the mantra, even as the workforce prepares for a show of force on Friday.
Investors will get a clearer picture of the tug-of-war between austerity and protest when the company holds a pre-close call on 14 July, followed by the full second-quarter earnings release on 28 July. The market will be looking for evidence that the margin discipline touted by the board is translating into real improvement – and for any hint that the escalating labour conflict could derail the recovery plan.
Ad
Mercedes-Benz Stock: New Analysis - 1 July
Fresh Mercedes-Benz information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
