BMW’s latest earnings note signals a sharper hit than analysts warned, sending shares to €62.60. Investors had braced for a modest profit warning, but Jefferies now doubts a full margin reset. The bank cuts its target to €70 from €92, citing China weakness and potential restructuring of German operations.

Jefferies flags a possible shift in BMW’s global assembly strategy, moving sourcing and integration toward North America and China. Bernstein sees the new CEO, Milan Nedeljkovic, tightening assumptions behind 2026 margin guidance, while Deutsche Bank notes a larger guidance cut linked to softer Asian markets and Middle East tensions. All point to a tougher outlook.

Deutsche Bank trims its price target to €90 from €100, keeping a buy rating, while Jefferies maintains a hold on the stock. Both banks highlight uncertainty over upcoming U.S. investor updates in June and July, which may offer little clarity. The consensus is that short‑term earnings will suffer, but long‑term restructuring could pay off.

With China’s sales slump driving a 2026 margin revision, BMW faces a strategic crossroads. Investors now weigh the impact of potential plant closures, supply‑chain shifts, and capital‑return plans. The company’s next investor day will likely reveal the depth of restructuring and whether the German automaker can regain its former profitability levels.