03:02 AM EDT, 09/23/2026 (MT Newswires) -- Metzler Capital Markets started its coverage of BMW (BMW.F) at hold, with a price target of 62 euros, flagging concerns about the German luxury carmaker's persistent challenges in China. In a Tuesday note focused on German automakers, the research firm said that BMW can become a "more compelling" investment case by recognizing that China's headwinds are structural, providing a firm commitment to a "stable and predictable" dividend, and shifting focus on returns and free cash flow instead of "ambitious" growth targets for volume. "Our preferred approach would be to commit to an annual dividend of EUR3 per share. If FCF exceeds EUR1.8bn in any given year- which should usually be the case-the excess cash could be used for share buybacks. Given BMW's strong balance sheet and declining capex, this would be a credible commitment, offering a 5% dividend yield plus share buybacks. Unfortunately, there is no indication that BMW is considering such a policy. A re-rating driven by the operating business appears unlikely," the note said.

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