Handelsbanken has reaffirmed its buy recommendation for truck and bus manufacturer Volvo, arguing that the European market for heavy trucks is entering a recovery phase. The target price remains unchanged at 335 kronor.
"All manufacturers increased their production pace in May, and we expect order intake to grow at a double-digit rate again in the second quarter, outpacing both production and invoicing. At the same time, North America is moving in the opposite direction due to tariff-related uncertainties and lower profitability for hauliers, even though the need to replace aging equipment is increasing," the bank wrote in an analysis.
Handelsbanken also believes that Volvo will raise its annual dividend by 0.5 kronor to 19.5 kronor per share. This would correspond to a yield of over 7 percent.
