FRANKFURT (dpa-AFX) - Recent insights into Traton's profitability were well received by investors on Wednesday. Shares of the Volkswagen subsidiary rose by as much as 3.8 percent in morning trading, breaking above the 21-day moving average. This upward movement closed a price gap that had emerged at the beginning of October.
In terms of margins, the third quarter performed strongly compared to consensus estimates, wrote analyst Harry Martin of Bernstein Research. He also praised Traton for outperforming rival Volvo in terms of order intake. Martin saw no issue with the company adjusting its margin and cash flow targets for this year to the lower end of the previously stated ranges, noting that this already aligns with analysts' expectations. Additionally, the revised targets now factor in the effects of U.S. tariffs and a likely slowdown in Brazil.
On Wednesday, Traton shares outperformed those of Daimler Truck, which saw only modest gains. For the direct competitor, expert Martin drew rather negative conclusions, attributing them not only to U.S. tariffs but also to Traton's order intake in Europe. Volvo shares in Stockholm also recorded only moderate gains on Wednesday.
