Traton: Jefferies initiates at 'Hold'
(CercleFinance.com) - After Traton's listing, Jefferies initiates with a 'hold' rating and a price target of 27 euros, estimating that it “offers investors an opportunity to regain exposure to premier truck brand Scania”.
However, the broker warns “we see work needed if Traton wants to be a "Global Champion" & weaker MAN profitability during its major model change”, indicating a preference for Swedish peer Volvo.
Jefferies expects truck demand to weaken after several good years but it is more positive than consensus, taking into consideration eCommerce and a fleet upgrade cycle driven by more efficient engines.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the broker warns “we see work needed if Traton wants to be a "Global Champion" & weaker MAN profitability during its major model change”, indicating a preference for Swedish peer Volvo.
Jefferies expects truck demand to weaken after several good years but it is more positive than consensus, taking into consideration eCommerce and a fleet upgrade cycle driven by more efficient engines.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.