BMW Stock: On the Fast Track in 2024?

Last Updated: 4. Januar 2024By

The BMW share performed well, but not outstandingly, in the past stock market year 2023. In the months of November and December, the stock gained over 13 percent and is once again struggling to reach the 100 euro mark at the beginning of the new year (as of January 4th, 2024, around 12 pm).

For 2024, the BMW share offers opportunities and has had a successful start. In the first trading week, the car manufacturer can claim increased sales in the USA and an optimistic analyst’s opinion. In the long term, other aspects are decisive for the German premium manufacturer. However, the dividend yield is already a strong argument for investors.

BMW gains in the USA – and JPMorgan raises price target again. The most important sales market for BMW is the highly competitive China, but in second place, ahead of Germany, is the USA. And here, the car manufacturer from Munich has recently been able to make significant gains. In the entire year 2023, BMW sold 362,244 cars, which is 9 percent more than the previous year. In the last quarter, there were 107,881 vehicles sold in the USA, which is 6 percent more than the same period last year.

While other analysts are partly more cautious or even pessimistic about the BMW share, JPMorgan Chase has once again raised its price target. After previously being at 110 euros, the new price target for the stock is now at 115 euros (upside potential of around 15 percent). In addition, the bank has put the stock on its focus list.

BMW share: What matters – in 2024 and the long term. For 2024, the development in China and the margin are likely to be important factors. If BMW can perform well in these areas, there is also potential for the BMW share to increase in value. The foundation is already there: The premium manufacturer is generating billions in profits and impresses investors with a healthy dividend yield of around 8.5 percent.

Long-term oriented investors should also pay attention to other factors: BMW is currently in a race (among others with Mercedes) to see who can make the next steps in the area of autonomous driving. In addition, unlike all competitors, the Bavarians are investing in various drive technologies – including electric, combustion, and fuel cell. This fact could become a hurdle or a boost for BMW in the coming years.