Update shared on 20 Nov 2025
Fair value Decreased 0.75%Analysts have slightly lowered their price target for Daimler Truck Holding to €41.90 from €43.20, citing recent adjustments in profit margin and revenue growth expectations.
Analyst Commentary
Recent updates from analysts reflect a balanced outlook for Daimler Truck Holding, pointing to both opportunities and challenges ahead that could influence the company's valuation.
Bullish Takeaways
- Bullish analysts continue to maintain a Buy rating, signaling strong underlying confidence in Daimler Truck’s fundamentals, despite the reduced price target.
- Expectations remain positive regarding the company's ability to capitalize on resilient demand within the commercial vehicles segment.
- The company’s ongoing strategic initiatives and efficiency programs are viewed as supportive for long-term margin improvement and sustainable growth.
- Analysts note that Daimler Truck’s focus on innovation and electrification may open new revenue opportunities and strengthen its market position over time.
Bearish Takeaways
- Bearish analysts have tempered expectations for near-term profit margins, citing headwinds such as rising input costs and currency volatility.
- Recent adjustments to growth forecasts suggest that revenue expansion may slow compared to previous quarters, potentially impacting short-term valuation.
- There is some caution around execution risk as the company undertakes large-scale transformation projects.
What's in the News
- Daimler Truck Holding AG issued new earnings guidance for the fourth quarter of 2025, expecting Trucks North America unit sales to be similar to the third quarter. Profitability is projected to decrease sequentially due to an unfavorable mix, reduced pricing benefits, higher tariff costs, and increased research, development, and administrative expenses (Key Developments).
- The company anticipates full-year profitability for Mercedes-Benz Trucks will reach the midpoint of the 5% to 7% guidance range (Key Developments).
- Unit sales for Mercedes-Benz Trucks in the fourth quarter are forecasted to be about 20% higher than the third quarter, provided current supplier challenges are resolved in a timely manner (Key Developments).
- For 2025, Trucks North America are expected to achieve the lower end of both the 135,000 to 155,000 unit sales range and the return on sales range of 10% to 12%, while working to overcome additional tariff costs (Key Developments).
Valuation Changes
- Fair Value has edged down slightly from €42.85 to €42.53, reflecting modest adjustments in underlying assumptions.
- Discount Rate has risen modestly from 8.29% to 8.44%, indicating a marginal increase in perceived risk or required return.
- Revenue Growth expectations have increased slightly from 2.34% to 2.38%, which points to a marginally improved growth outlook.
- Net Profit Margin is now estimated at 6.62%, up from 6.22%, which suggests a small improvement in projected profitability.
- Future P/E has remained nearly unchanged and has moved fractionally from 10.78x to 10.79x.
Disclaimer
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