Daimler: Oddo BHF downgrades buy rating
(CercleFinance.com) - On Wednesday an analyst at Oddo BHF has downgraded his "buy" rating on the Daimler group share, adopting a "neutral" stance, after a final warning in 2019 that will inevitably weigh on the group's dividend.
The broker says that after this warning, issued on 22 January, it has reduced its 2019 estimates by 33%, thereby integrating the latest extraordinary items communicated by the car maker.
The broker also remains cautious beyond 2019, with it expecting another fall in the group's 2020 adjusted operating margin (to 4.8%), with it particularly penalised by MBC (4.3%e vs. 5.9% in 2019) and Daimler Trucks (5.2%e vs. 6.3%e) in both a regulatory (content necessary for CO2 in Europe at MBC) and cyclical (sharp decline in truck markets in Europe/NAFTA) context that are more burdensome, Oddo BHF adds.
The analyst has therefore set a target of 46 euros for the share, meaning upside potential of 6%.
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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 broker says that after this warning, issued on 22 January, it has reduced its 2019 estimates by 33%, thereby integrating the latest extraordinary items communicated by the car maker.
The broker also remains cautious beyond 2019, with it expecting another fall in the group's 2020 adjusted operating margin (to 4.8%), with it particularly penalised by MBC (4.3%e vs. 5.9% in 2019) and Daimler Trucks (5.2%e vs. 6.3%e) in both a regulatory (content necessary for CO2 in Europe at MBC) and cyclical (sharp decline in truck markets in Europe/NAFTA) context that are more burdensome, Oddo BHF adds.
The analyst has therefore set a target of 46 euros for the share, meaning upside potential of 6%.
Copyright (c) 2020 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.