BUZZ-Jefferies reviews automakers’ Q3 performance, upgrades Renault rating, downgrades Mercedes-Benz rating

November 10 - ** Jefferies, in preparation for 2027, summarized automakers' third-quarter results, upgraded Renault RENA.PA rating, and downgraded Mercedes-Benz MBGn.DE rating

** The institution stated that Renault is well-positioned for 2027, benefiting from changes in European policy, carbon dioxide emission regulations, and the growth of its engine joint venture Horse

** Renault shares rose about 2%; Mercedes-Benz fell by 0.2%

** The report says that Mercedes-Benz has no advantage in cash flow generation in the Chinese market and its profitability faces pressure, which may be a drag

** Overall, Jefferies stated that none of the automakers with business exposure to China have provided reassurance on market demand or future market position

** The report pointed out that commodity inflation is mixed; Ford F.N and General Motors GM.N have expressed more concern over cost pressures than European carmakers, who seem less worried or are less willing to discuss developments in 2027

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