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 improve its profit margins in Europe and Asia.
‘In the short term, the cycle that currently carries the heavy goods vehicle market should peak in 2023 and 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 should trade around 7x its Ebitda for 2022, the Volvo trades on average six times its profits and where the American Paccar capitalizes 10 times its mid-cycle Ebitda.
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