Stifel reaffirms its 'buy' recommendation on Daimler Truck and raises its target price from €41 to €58, on the basis of higher estimates for the German truck manufacturer following its annual results published last week.

Noting that its Mercedes-Benz brand has significantly narrowed the performance gap with its peer Volvo, the broker deems it 'increasingly difficult to justify Daimler Truck's heavy valuation discount', which has nonetheless widened in relation to the Swede.

Stifel also points out that if the group decides - like its former parent company - to redistribute all its industrial free cash flow to its shareholders, it could return more than 10% of its current market capitalization to them from 2026.

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