FRANKFURT/STOCKHOLM (dpa-AFX) – An encouraging note from Bank of America (BofA) had a positive impact on commercial vehicle manufacturers’ shares on Tuesday. Daimler Truck, Traton, and Volvo stocks all rose between 2.1 and 3.7 percent after Alexander Jones from the US bank advised investors to buy in anticipation of a cyclical turning point. There are more and more signs pointing in this direction, thanks to current market indicators, a clearer tariff and regulatory environment, and likely improvements in margins.
Against this backdrop, the expert named Daimler Truck as his new sector favorite among European manufacturers—replacing Volvo—while reaffirming his “Buy” recommendation for both stocks. Daimler’s shares are currently trading below their long-term average price-earnings ratio, while Volvo’s higher valuation is not unjustified, he noted. He also emphasized that Daimler’s equity story is now more promising, in part due to its increased focus on the US market, which is a cyclical frontrunner.
Traton, in his view, remains an exception with a negative “Underperform” rating. For the Volkswagen subsidiary, he believes that, among other things, lower returns compared to competitors justify a lower valuation./tih/la/stk
