FRANKFURT (dpa-AFX) – Traton shares managed to avert a further deterioration in their chart performance on Wednesday after an initial drop. Due to a cautious outlook, the Volkswagen commercial vehicle subsidiary seemed headed for another day of losses in the morning—at first down by nearly six percent. However, amid a broad market recovery, particularly among automotive stocks, the shares clawed back their losses and even turned positive. Nevertheless, in the MDax, they remained among the weakest performers.
On Monday and Tuesday, the shares had lost almost nine percent in total due to the escalating conflict in the Middle East. On Wednesday, however, markets rebounded, driven by hopes that U.S. armed forces would secure the Strait of Hormuz, a key route for oil and gas transport. In this context, shares of competitor Daimler Truck, which had already started the day on a positive note, extended their recovery to a gain of more than five percent. Both commercial vehicle manufacturers also benefited from the latest market data out of the United States.
Traton released its annual figures in the morning, which, according to analyst Fabio Hölscher of Warburg Research, pointed to a solid fourth quarter. However, the expert considered the outlook somewhat below expectations. The targeted margin goal implied no growth on average, falling short of market expectations. The main strategic concern remains returning the international business to profitability in light of U.S. trade barriers.
Analyst Daniela Costa of Goldman Sachs wrote that recent data on the U.S. truck market should help offset the negative impact of Traton’s weak outlook. Orders for heavy-duty trucks (Class 8) in the United States, as determined by a market researcher for February, were strong, she noted. According to expert Kyle Menges of Citigroup, the extent of the improvement was a positive surprise.
The U.S. influence may have benefited Traton’s competitor Daimler Truck somewhat more than the VW subsidiary on Wednesday. Earlier in February, Bank of America named the Stuttgart-based company its “sector top pick,” citing its greater dependence on the U.S. market as a positive factor. Daimler Truck’s quarterly results are expected next Thursday./tih/bek/mis
