Mercedes-Benz Stock Nears 52-Week Low After Profit Warning

Mercedes-Benz Group AG (MBGn) shares declined over 3.5% on Tuesday to trade near a 52-week low after the automaker slashed its full-year profit guidance. The company cited challenges in the key Chinese market as a primary driver for the downward revision.

As of midday trading in Europe, the stock was priced at €39.89, approaching its 52-week low of €38.89. The warning comes amid broader signs of pressure, including a reported 27% drop in the company's China car sales in the first quarter and a negative revenue growth rate of 7.1% as of June 30, 2026.

Strong EV Demand Meets Headwinds

The profit warning creates a stark contrast with the company's otherwise positive product momentum, particularly in the electric vehicle (EV) segment. The market is weighing this strong demand against shrinking profitability, a sentiment reflected in analyst earnings per share (EPS) estimates, which have fallen 11.1% over the past 30 days.

Recent reports indicate several bright spots for the automaker's product lineup:

• Demand for the new all-electric CLA model has reportedly exceeded the company's production capacity.
• Overall battery-electric vehicle (BEV) sales grew 9% year-over-year in the first quarter to 44,300 units.
• Sales of the popular GLC model rose 17% in the U.S. and 7% in Europe during the same period.

Valuation and Analyst Outlook

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Despite the negative momentum, some analysts point to the stock's valuation as a potential cushion for investors. According to data from October 27, the stock offers an 8.5% dividend yield and traded at a price-to-earnings ratio of 7.3x as of June 30. The consensus fair value estimate of €49.93 implies a potential 25.2% upside from current levels.

However, analysts remain cautious. Strategists at Citi, who hold a Neutral rating, argued in an August note that the company's valuation largely reflects its net cash and its stake in Daimler Truck, assigning little value to the core passenger-car division. The bank indicated it would wait for signs of margin stabilization before adopting a more positive stance.

Technical Levels to Watch

From a technical perspective, the stock remains in a confirmed downtrend, trading below its 20-day, 50-day, and 200-day simple moving averages. Investors will be watching the key support level around the 52-week low of €38.89.

The company is scheduled to release its next earnings report on October 28, which will provide investors with a clearer picture of whether strong demand for models like the CLA and GLC can begin to offset the broader margin pressures.