Daimler Truck's Investment Case Hinges on Mercedes-Benz Unit Turnaround

Dow Jones
08/20

1104 GMT - Daimler Truck's investment case increasingly hinges on investors' belief that management can improve the Mercedes-Benz margin and achieve its 2030 targets of an 8%-12% margin, Bernstein analysts write. The Mercedes-Benz business has been losing share across key European markets, which Bernstein views as symptomatic of weaker product competitiveness and brand perception. The Mercedes-Benz trucks segment faces increased competition in 2027, while structural factors weigh on profitability, including greater exposure to lower-margin Western European markets. German headcount reduction targets don't appear to be materializing, while a production shift to low-cost countries is unlikely to accelerate until 2030. The bank lifts its stock-price target to 39 euros from 37 euros and keeps its underperform rating. Shares rise 0.6% to 45.49 euros.

 

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