...- Premium carmaker BMW AG's adjusted free operating cash flow (FOCF) of about 4.5 billion in first-half 2021 significantly exceeded our expectations, and we now forecast it will be 5 billion-6 billion for the full year. - Continued strong demand and ongoing initiatives to streamline its cost base should allow BMW to maintain solid FOCF conversion in the next two years, including a healthy buffer to absorb near-term supply chain challenges and the ramp-up of margin-dilutive sales of electric vehicles (EVs). - BMW faces increasing competition for battery electric vehicles (BEVs) in Europe and China, making it more difficult to build and solidify a market position as strong and entrenched as it has currently in the overall premium passenger car market. - At the same time, BMW displays consistently high profitability, which helps it stand out from its peer group. - We have therefore revised our outlook on BMW to stable from negative and affirmed our 'A' long-term and 'A-1' short-term issuer...
