Daimler: Mainfirst still a buyer as Zetsche leaves
(CercleFinance.com) - In a context of uncertainty as to the identity of the future chairman of the group's supervisory board, Mainfirst maintains its buy rating on the Daimler share, with a target price of 54 euros.
Contrary to expectations, Dieter Zetsche, Daimler's Chairman and CEO from 2006 to 2019, stated in an interview with FAZ that he would not be standing for re-election as Chairman of the Supervisory Board, even though the post had been reserved for him from 2021.
Mainfirst reports that major investors were critical of the plan, in particular pointing to "Daimler's poor performance during the last two years of Zetsche's tenure as CEO". The broker therefore believes that Zetsche's decision "will be received positively by the market" and that "A discussion about Zetsche becoming chairman could have been a drag on momentum in the coming months".
Mainfirst is considering the candidacy of former CFO Uebber, arguing that the application froim an outsider would be better accepted by the market.
This market seems to like seeing the back of him anyway - the share is up over 3.5% on Monday afternoon.
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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.
Contrary to expectations, Dieter Zetsche, Daimler's Chairman and CEO from 2006 to 2019, stated in an interview with FAZ that he would not be standing for re-election as Chairman of the Supervisory Board, even though the post had been reserved for him from 2021.
Mainfirst reports that major investors were critical of the plan, in particular pointing to "Daimler's poor performance during the last two years of Zetsche's tenure as CEO". The broker therefore believes that Zetsche's decision "will be received positively by the market" and that "A discussion about Zetsche becoming chairman could have been a drag on momentum in the coming months".
Mainfirst is considering the candidacy of former CFO Uebber, arguing that the application froim an outsider would be better accepted by the market.
This market seems to like seeing the back of him anyway - the share is up over 3.5% on Monday afternoon.
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.