Daimler: shares down on diesel emissions issue.
(CercleFinance.com) - Daimler shares are down nearly 1% in Frankfurt on Thursday, on reports that Stuttgart prosecutors are continuing to investigate the carmaker for diesel emission test manipulations.
German media suggest that one million Mercedes-Benz engines could be involved in the case and that the concerned cars could lose certification, meaning that they would be banned from use.
According to Bernstein analysts, this is a 1-to-2 billion euros cost issue "at most."
"We won't try to pretend that this is not damaging for Daimler and the sector," the broker said, reiterating its "outperform" rating and target price of 85 euros on the Daimler shares.
"But we take comfort from the fact that this is a European issue, not a US investigation", Bernstein added.
With Mercedes selling around 7,000 diesel cars per year in the US, such small volumes would mean that the penalty would only amount to 200-300 million dollars there, it said.
The Daimler stock is currently down 0.8% at under 65 euros, making it the sharpest faller on the DAX 30 index.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
German media suggest that one million Mercedes-Benz engines could be involved in the case and that the concerned cars could lose certification, meaning that they would be banned from use.
According to Bernstein analysts, this is a 1-to-2 billion euros cost issue "at most."
"We won't try to pretend that this is not damaging for Daimler and the sector," the broker said, reiterating its "outperform" rating and target price of 85 euros on the Daimler shares.
"But we take comfort from the fact that this is a European issue, not a US investigation", Bernstein added.
With Mercedes selling around 7,000 diesel cars per year in the US, such small volumes would mean that the penalty would only amount to 200-300 million dollars there, it said.
The Daimler stock is currently down 0.8% at under 65 euros, making it the sharpest faller on the DAX 30 index.
Copyright (c) 2017 CercleFinance.com. All rights reserved.