Barclays ups BMW on better near-term performance

** Barclays ups BMW BMW to "equal-weight" from "underweight", as the German premium carmaker now demonstrates better near-term performance, with much more resilient Q2 volumes and more limited tariff effects

** The rating upgrade also comes after BMW confirmed Q2 auto margin guidance in a pre-close earnings call

** Both BMW and Mercedes MBG ("equal-weight") "can hold their current levels for now especially if there was a constructive tariffs outcome in the course of July," the broker says

** Among EU automakers, Barclays continues to favor "overweight"-rated Ferrari RACE and Renault RNO, while Porsche PAH3 ("underweight") remains its least preferred name

** Among the main concerns for the German sector, Barclays names continued structural profit pool erosion risk in China, and broader industry price normalisation risk from a still elevated post-pandemic levels