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Mercedes-Benz Stock Offers Deep-Value Potential as Citi Sees Recovery Catalysts
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Mercedes-Benz Group’s depressed stock valuation could offer a significant value opportunity if near-term pressures ease, according to Citi analysts following recent executive roadshows in New York.
Citi noted that Mercedes-Benz’s market capitalization is now roughly equivalent to its approximately €30 billion net cash position plus its stake in Daimler Truck.
Citi maintains a Neutral rating on Mercedes-Benz stock but sees a potential “value Buy” case if margins stabilize and investor concerns diminish.
Even under Citi’s trough fiscal 2026 margin assumptions, Mercedes-Benz could generate approximately €4 billion in base free cash flow.
Citi nevertheless expects investors to seek clearer evidence of margin stabilization before Mercedes-Benz stock can achieve a meaningful revaluation.