FRANKFURT (dpa-AFX) – Shares of global truck manufacturers could see movement on Tuesday morning following a report from US bank Morgan Stanley. In pre-market trading, Daimler Truck remained stable at 40.05 euros, while Traton slipped by 2.2 percent to 30.72 euros. Volvo's B-shares are also expected to open weaker.
Analysts led by Shaqeal Kirunda reaffirmed their "Buy" recommendation for Daimler Truck, slightly raising the price target from 46 to 47 euros and naming the stock their "Top Pick" among European truck makers. In contrast, they downgraded Volvo to "Equal Weight" and lowered their rating for Traton to "Underweight." Paccar was maintained at "Equal Weight."
According to the Morgan Stanley analysts, while global truck markets continue to face challenges, "early signs of recovery" suggest the low point may be near. They therefore recommend a "selective investment strategy."
Morgan Stanley believes a turning point in the new year could be driven by factors such as rising freight rates, easing tariff uncertainties, greater clarity on the stricter EPA27 emissions standard from the US Environmental Protection Agency, or positive effects from completed production relocations.
"Daimler Truck is the market leader in North America and is therefore well positioned to benefit from a recovery," they wrote. Volvo's stock, on the other hand, has performed strongly in recent months and could continue to do well. However, the analysts see better investment opportunities elsewhere.
Traton, by contrast, is suffering in the short term from the ramp-up of its Chinese truck plant as well as tariff burdens, and may have to wait until 2027 to benefit from European infrastructure and defense spending./ck/zb
