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On Tuesday, Barclays (LON:BARC) analyst shifted their stance on Daimler Truck Holding (ETR:DTGGe) AG (DTG:GR) (OTC: DTRUY), downgrading the stock from Overweight to Equalweight and setting a price target of EUR45.00. The revision reflects concerns over near-term challenges in the company’s North American operations, which account for approximately 65% of its industrial adjusted EBIT, and delays in revealing details of its new multi-billion euro cost reduction program in Europe.
The analyst noted that while Daimler (OTC:MBGAF) Truck’s group strategy and mid-term ambitions are still valued, the absence of short-term catalysts and overly optimistic 2025 expectations pose risks of potential disappointments in the near future. The upcoming Capital Markets Day in July could offer some momentum, but there are concerns that expectations may be prematurely high, particularly regarding the timing of cost savings and the extension of the current share buyback program.
Despite these concerns, Barclays acknowledges that Daimler Truck’s relative valuation remains attractive, and the potential for a mid-term re-rating once uncertainties are resolved. The analyst’s commentary indicates a cautious outlook for the stock in the immediate term, while not dismissing the possibility of future value appreciation.
Investors in Daimler Truck may be closely monitoring the company’s progress towards its cost savings initiatives and the potential impact of its Capital Markets Day presentation on market sentiment. The company’s ability to address its short-term challenges while executing on its long-term strategy will be crucial in determining its future stock performance.
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