0915 GMT - Mercedes-Benz had a disappointing quarter and delivered soft guidance, but cash returns were much stronger than expected, HSBC analysts Michael Tyndall and Pushkar Tendolkar write in a note. Both fourth-quarter EBIT and 2026 guidance were far below HSBC expectations, seemingly due to weaker pricing and lower China earnings. However, shares were only down 1.5% on the day and HSBC suspects the market was focused on the very strong dividend proposal. Management also indicated that disposals of at least 2 billion euros would provide scope to increase shareholder return. "In an uncertain market, it's this focus on shareholder returns that makes it an attractive investment, in our opinion." HSBC lowers its target price on the stock to 73 euros from 74 euros and keeps its rating at buy. Shares fall 0.5% to 56.83 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

February 13, 2026 04:15 ET (09:15 GMT)

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