Jefferies downgrades its recommendation on BMW from 'buy' to 'hold', with the target price maintained at 110 euros, believing that the German automotive group's shares 'already incorporate the full distribution of free cash flow, which is not the case with Mercedes'.

In his opinion, no traditional carmaker has yet managed the ongoing transition of the sector better than BMW, and its Neue Klasse will inaugurate its third generation of electric vehicles next year, while most of its peers are still working on their second.

The broker is raising its adjusted EPS estimates by 4 to 5%, while leaving its free cash flow estimates unchanged. However, it considers that BMW's positioning is no longer 'misunderstood' by the market.

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