Mercedes-Benz: Automotive Upside Is Clearer At This Point In 2026

Mercedes-Benz (MBGYY) remains undervalued, trading below €50/share with a well-covered 6%+ yield and an A credit rating. I maintain a €78/share price target and a 'Buy' rating, expecting significant long-term upside even at conservative 8-9x P/E multiples. The company's luxury-first strategy, strong FCF (€2B in Q1), and resilient margins support robust forward growth despite EV headwinds and China risks.