After the storm, upgrade to Neutral

Research evidence excerpt

After the storm, upgrade to Neutral

Research Analyst BofA Europe (Frankfurt)

financial result and BMW’s strong balance sheet. We now expect Automotive EBIT +49 69 5899 5080

margin to trough at c2% in FY26e, before recovering only gradually to c5% by FY28e. horst.schneider@bofa.com

Stephen Benhamou >>

Research AnalystCMD in September: credibility of the recovery path is key BofASE (France)

The next catalyst is BMW’s CMD at the end of September, which should give new CEO 33 1 8770 0293

Milan Nedeljković the opportunity to reset the equity story. We do not expect a stephen.benhamou@bofa.com

revolutionary new target framework, but we would expect BMW to defend the 8%

Automotive EBIT margin ambition, likely with a pushed-out timeline towards 2030. We

think BMW needs to show where cost savings can still come from, despite already being Stock Data

one of the leanest OEMs; how Neue Klasse can compete in China without destroying

margins; and whether China overcapacity can be addressed. The CMD should also Price 59.74 EUR

provide an opportunity to highlight the high-margin potential of Alpina, and potentially a Price Objective 70.00 EUR

more ambitious productivity narrative around humanoid robotics. Date Established 22-Jun-2026

Investment Opinion B-2-8

Estimates (Dec) (EUR) 2024A 2025A 2026E 2027E 2028E 52-Week Range 58.76 EUR-97.92 EUR

EPS (Reported) 11.6 11.9 7.04 9.63 11.6 Mrkt Val / Shares Out (mn) 35,963 EUR / 602.0

EPS Change (YoY) -34.3% 2.3% -40.8% 36.8% 20.5% Average Daily Value (mn) 105.70 USD

Consensus EPS (Visible Alpha) 7.50 9.70 11.62

Free Float 49.8%

Dividend / Share 4.30 4.40 2.85 3.65 4.36

BofA Ticker / Exchange BAMXF / GER

Valuation (Dec)

P/E 5.14x 5.03x 8.48x 6.20x 5.14x Bloomberg / Reuters BMW GY / BMWG.DE