Daimler: UBS upgrades stock
(CercleFinance.com) - On Friday UBS upgraded its recommendation on Daimler shares from "neutral" to "buy", having increased its target price for them from 79 euros to 100 euros.
In a report, the broker justifies its optimism by (1) a earnings momentum that it considers favourable, which could see Mercedes-Benz profits reach record levels in 2022 thanks to strong demand and the recovery of production.
The broker also highlights (2) the German group's strengths in electrification, saying that it is convinced about the future success of the EQS and the EVA2 platform, which it believes could catapult Mercedes-Benz to the top of the luxury electric vehicle segment, with 200,000 to 300,000 deliveries annually.
Finally in its comments, UBS highlights (3) the forthcoming split of the truck division, which, although not a real catalyst in its opinion, will enable the truck subsidiary to adopt a real medium-term strategic plan, after several years of poor performance.
The share is currently up over 2.5%, leaving a dull Frankfurt market behind it (-0.15%).
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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.
In a report, the broker justifies its optimism by (1) a earnings momentum that it considers favourable, which could see Mercedes-Benz profits reach record levels in 2022 thanks to strong demand and the recovery of production.
The broker also highlights (2) the German group's strengths in electrification, saying that it is convinced about the future success of the EQS and the EVA2 platform, which it believes could catapult Mercedes-Benz to the top of the luxury electric vehicle segment, with 200,000 to 300,000 deliveries annually.
Finally in its comments, UBS highlights (3) the forthcoming split of the truck division, which, although not a real catalyst in its opinion, will enable the truck subsidiary to adopt a real medium-term strategic plan, after several years of poor performance.
The share is currently up over 2.5%, leaving a dull Frankfurt market behind it (-0.15%).
Copyright (c) 2021 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.