Daimler Truck's exit from the DAX index exerts pressure
In the ever-evolving world of automotive manufacturing, the performance of Daimler Truck (WKN: DTR0CK) has been a topic of interest lately. The German truck manufacturer's stock has dipped below the 200-day moving average due to today's price drop, following a series of key developments.
Bernstein analyst Harry Martin has added Daimler Truck to his "Underperform" list with a price target of 32 euros, citing a pessimistic view of European truck manufacturers, particularly Daimler Truck due to its heavy dependence on U.S. business. However, analysts remain optimistic about Daimler Truck’s future profitability, anticipating a 41% profit growth over the next couple of years.
The company has upgraded its financial targets for 2030, projecting annual organic revenue growth between 3% and 5% in its industrial business segment, highlighting a sustained growth trajectory. Daimler Truck has also announced a significant share buyback program valued up to €2 billion starting in late 2025, signaling management’s confidence in the stock and aiming to enhance shareholder value.
The focus on Daimler Truck is currently on the tariffs announced by U.S. President Donald Trump, which could potentially impact the company's U.S. operations. Daimler Truck North America (DTNA) remains a core profit driver for the company, delivering strong financial results with a 12.9% adjusted return on sales in 2024. However, recent sales data show a 20% decline in Trucks North America segment sales in Q2 2025, indicating some near-term volatility or headwinds in the U.S. truck sales environment.
Comparing Daimler Truck with Traton (WKN: TRAT0N), while direct detailed comparison data are limited, Daimler Truck is noted for its strong U.S. presence and diversified global footprint including Europe, Asia, and Latin America. Daimler Truck’s resilience in North America and increasing electric vehicle sales (+90% in Q2 2025) provide competitive advantages. Market performance-wise, Daimler Truck shares have showed approximately 12-15% growth over 12 months, trailing some peers like Oshkosh Corp which delivered +20 to +26% returns, indicating moderate but solid investor confidence.
In summary, Daimler Truck’s stock performance is underpinned by strong fundamentals, a committed U.S. market leadership, and optimistic medium-term profit growth outlooks, tempered by recent sales softness in North America. Its ongoing strategic initiatives and shareholder returns programs reflect management’s confidence, while comparison with peers suggests room for further market share and valuation gains.
Traton (WKN: TRAT0N), on the other hand, gained nearly one percent in midday trading. Martin expects the discount on Traton's stocks to improve as the float increases and sees Traton in a special situation due to its low liquidity, which he believes is not based on its fundamental valuation. However, he expects a sales decline of more than 10 percent and stock price corrections for Traton.
- Despite the current dip in Daimler Truck's stock price, analysts remain optimistic about its future profitability, anticipating a 41% profit growth over the next couple of years, and the company's focus on investing in electric vehicle sales and share buyback programs highlights management's confidence in the stock.
- In contrast, while Traton gained nearly one percent in midday trading, Bernstein analyst Harry Martin expects a sales decline of more than 10 percent and stock price corrections for Traton, citing its low liquidity as a potential concern that may not reflect its fundamental valuation.
