(CercleFinance.com) – RBC on Tuesday initiated coverage of the Daimler Truck title with an ‘outperformance’ recommendation and a price target of 48 euros.
In a research note, the Canadian broker believes that the truck and bus branch of Daimler is on track, since its separation from Daimler, to drastically recover its profit margins in Europe and Asia.
‘In the short term, the cycle that currently carries the heavy goods vehicle market is expected to peak in 2023 and in the longer term, the sector benefits from several powerful supporting factors,’ he adds.
For RBC, the German group has the most promising potential in its sector.
According to the intermediary, the Daimer Truck share is expected to trade around 7x its Ebitda for 2022, where Volvo is trading on average at six times its earnings and the American Paccar capitalizes 10 times its mid-cycle Ebitda.
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