(News Bulletin 247) – Oddo maintains its outperformance rating on the Daimler Truck share with a price target raised from 37 to 39 euros.
The analysis office considers the stock to be ‘still attractive’ despite a disappointing Q4, with in particular an EBIT that came out 10% below the consensus.
Nevertheless, the 2023 guidance is still confident and implies a further increase in the margin in 2023: 7.5% to 9% on the Industrial activity and almost 10% upside vs the 2023 EBIT consensus in the middle of fork.
The outlook is based on resilient demand, a margin environment which remains supported by price effects and cost reduction measures and an FCF which should increase strongly (+ around 25%) opening the door to a policy of returning to the most generous shareholder, reports Oddo.
Thus, ‘it is not unrealistic to anticipate an increase in Daimler Truck’s profitability this year’, the company having ‘clear assets at its disposal to face inflation and defend its margins in 2023 and beyond’, underlines the analyst.
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