agent Entrepreneur logo
MenuMENU
SearchSEARCH

BMW Recovery: Some Are Optimistic, but Many Remain Skeptical

February 7, 2010
2 min to read


FRANKFURT - BMW AG has forecast a modest rise in car sales this year and confirmed it expected a 2009 pretax profit despite the global economic crisis, Reuters reported.

While some analysts welcome the sales figures for 2009 and see upside to the company's targets, others expect continuing pressure on the company's profit margins and outlook as the car sector remains vulnerable due to the global economic crisis.

Ad Loading...

"Revenues have surprised positively. We see our positive case for BMW confirmed," Equinet analyst Tim Schuldt wrote, keeping a "buy" rating on the stock.

BMW said its 2009 sales came in at 50.68 billion euros ($71.15 billion), exceeding the DZ Bank estimate of 48.35 billion euros.

Analysts at Citigroup also keep a "buy" rating on BMW. They argued that the launch of the new 5-series medium-premium sedan in 2010 could add positive momentum to the current consensus for revenue growth of 5 percent.

DZ Bank analyst Michael Punzet remains skeptical on the company despite revenue coming in above his expectations, keeping a "sell" rating on the stock.

"Without any more details, especially on sales and earnings division break down we see no reason to change our skeptical view on premium manufacturers and therefore confirm our sell recommendation on BMW," Punzet wrote.

Ad Loading...

Analysts at Exane BNP Paribas also remain cautious on the stock, hiking their price target but sticking to their "underperform" rating.

"We remain skeptical about the aggressive 2012 group margin target," the Exane analysts wrote.

BMW aims to achieve an earnings before interest and taxes (EBIT) margin of 8 percent to 10 percent in the automobile segment by 2012.

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...