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On Tuesday, Deutsche Bank (ETR:DBKGn) analysts adjusted their outlook on Traton SE (ETR:8TRA:GR) (OTC: TRATF), lowering the price target from EUR 42.00 to EUR 40.00 while maintaining a Buy rating on the stock. The revision follows Traton’s recent quarterly report and future guidance, which did not meet market expectations.
Traton, known for its heavy-duty commercial vehicles, reported strong performance for the fourth quarter. However, the company’s guidance for 2025 fell short of what investors anticipated. This announcement came after a period of increased buy-side estimates, influenced by Volvo (OTC:VLVLY)’s order beat and a more optimistic message from the industry.
Despite the positive momentum in Europe and signs pointing towards a positive direction, Traton expressed caution. The management emphasized that it is premature to declare a full recovery. They highlighted that Traton started 2024 with a strong backlog, a situation they view as unique to this year. Consequently, they anticipate the first quarter of 2025 to be challenging, especially due to high expectations, but they express hope for improvement throughout the remainder of the year in Europe and potential pre-buy effects in the United States.
Analysts from Deutsche Bank noted Traton’s consistent performance and reiterated their confidence in the company’s stock by sustaining a Buy rating, albeit with a reduced price target. The new target reflects the cautious stance of the company regarding the near-term outlook but also acknowledges the underlying strength of Traton’s business fundamentals.
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