Citigroup: The outlook for Mercedes-Benz may lead to a decrease in stock price.

Analysts at Citigroup wrote that after Mercedes-Benz released its full-year performance report, the company's stock price may decline today. Mercedes-Benz's adjusted sales return outlook is 3%-5%, while the adjusted sales return rate for 2025 is 5%. Citigroup believes that this outlook is 150 basis points lower than the market's average expectations. Citigroup had previously expected profit margins to remain relatively stable, so they hope to obtain more details on this outlook. The reasons for this outlook may be the production costs of new car models, depreciation and amortization, high tariffs and currency resistance, declining pricing power, and reduced sales volume in China. "Although 2027 appears to be a better year for Mercedes-Benz due to self-rescue measures and product momentum, the news of a decline in free cash flow and earnings before interest and taxes in 2026 may drag down the stock price today."