Daimler: shares drop after Bernstein downgrades stock
(CercleFinance.com) - Daimler shares are losing ground on Tuesday after Bernstein said it is downgrading the stock to "market perform," as Geely's investment complicates the group's structural change.
The broker, which had an "outperform" rating on the share, also cut its target price to 73 euros, saying that a main catalyst has now gone.
"Our view that Daimler was heading towards a corporate breakup was central to our "outperform" thesis," Bernstein wrote in a report sent to clients.
"With Geely hovering, Daimler is likely to play defence - and that means staying big," it said.
Shares of Daimler were down 0.5% at 68.2 euros in morning trading, underperforming Frankfurt's DAX blue-chip index, which is 0.2% lower.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The broker, which had an "outperform" rating on the share, also cut its target price to 73 euros, saying that a main catalyst has now gone.
"Our view that Daimler was heading towards a corporate breakup was central to our "outperform" thesis," Bernstein wrote in a report sent to clients.
"With Geely hovering, Daimler is likely to play defence - and that means staying big," it said.
Shares of Daimler were down 0.5% at 68.2 euros in morning trading, underperforming Frankfurt's DAX blue-chip index, which is 0.2% lower.
Copyright (c) 2018 CercleFinance.com. All rights reserved.