It would be beneficial to both brands, they said.
As reported by Automotive News Europe, Bernstein analysts, including Max Warburton, said that the Bavarian brand could benefit largely if it buys the British luxury brand from India's Tata Motors.
"BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand," said the analysts from a research note.
Gallery: Land Rover Defender 2020MY
The analysts added that JLR is severely challenged at the moment – both operationally and financially – but having a bigger partner could solve its woes. This suggestion came after the increasing losses of Tata Motors plus a sales slowdown in China and issues with Brexit.
On BMW's side, buying JLR could add 20 percent to its earnings, according to Bernstein analysts. It could also contribute to a quarter increase in German marque's sales volume. BMW could buy JLR for $11.2 billion (9 billion pounds), but Tata would need to swallow its pride to do so and BMW would need to be less conservative.
The Bernstein analysts wrote, however, that the relationship between the two companies would be "emotionally complex." This is because of the companies' former relationship in 1990s when BMW owned Land Rover.
"It was a traumatic period for the Bavarian company and there are executives in Munich who are still emotionally scarred by the experience," said the analysts.
As it stands, BMW and JLR have announced collaboration last June in terms of electric cars and allegedly even outside the plugged cars. If BMW indeed buys JLR in the future, the partnership between the two brands will only become stronger, which, again, would be beneficial for the two automakers – history aside.