Daimler Truck: UBS initiates coverage on hold

(CercleFinance.com) - UBS announced on Wednesday that it had initiated coverage of Daimler Truck shares with a "neutral" rating and a target price of E44.


The broker explains that the truck and heavy goods vehicle manufacturer has all the assets to excel in its main markets, i.e. North America and Europe, but that the risks it faces in both regions should limit its upside on the stockmarket.

In North America, competition has intensified with the launch of new models and the arrival of ambitious rivals, UBS says, which also warns of the impact of customs surcharges, given that Daimler manufactures 76% of its vehicles for the North American market in Mexico.

Regarding Europe, the broker expects the Mercedes-Benz brand to return to growth in H2, but also considers that the results of the German elections are rather mixed, and that future rate cuts by the ECB will prove crucial in supporting activity.

In this context, UBS believes that the current share price reflects a fairly well-balanced overall picture.


Copyright (c) 2025 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.