Barclays starts Daimler Truck with 'overweight' on re-rating potential

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16/12/2021 08:33

Dec 16 -    ** Barclays initiates German truck and bus
maker Daimler Truck  DTGGe.DE  with an "overweight" rating as
independence from Daimler Group seems to suit the spin-off well
    ** Given the group's focus on optimising costs and strong
zero emission vehicle offering, the brokerage sees Daimler Truck
in a position to address a very wide market
    ** "We believe that it is on track to achieve its margin
targets of >10% by 2025, as improvement programmes as well as
volumes should support earnings in the coming years," it adds
    ** Barclays notes the stock trades at an about 20% discount
versus peers which coupled with the group's potential to re-rate
makes it an attractive entry point
    ** The broker sets target price on Daimler Truck at EUR 43,
implying a 30% upside when compared to the stock's Wednesday
close of EUR 33
    
    
    

 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))