Providers and Administrators in blue 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

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →