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Traton is a buy at Deutsche Bank due to MAN upside

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Deutsche Bank defended upside potential for Traton SE (OTCPK:TRATF) on Tuesday even after the company announced a weak quarter for MAN amid a lack of wiring harnesses from Ukraine.

Analyst Nicolai Kempf noted that estimates were made for the brand has already fallen noticeably in recent months, but considers the actual results to be significantly better than expected, since the mark has almost reached a balanced level and MAN was the main driver for the increase in earnings.

“While the production stop in the second quarter was similar to the stoppages in Q2-20, the result improved by almost 300 million brands thanks to supportive price and mix effects. Management does not see any weakening of demand, but is cautious about accepting new orders in view of the high order backlog. In fact, the current backlog is sufficient to cover the next 12 months.”

The upside potential for the MAN business is described as immense and the restructuring progress is rated as very encouraging.

Deutsche Bank kept a buy rating on Traton (OTCPK:TRATF).

Earlier in the day, the final steps in charging infrastructure between the Traton Group, Daimler Truck and the Volvo Group were announced. The new JV is expected to play a significant role in supporting the European Union’s Green Deal for zero-carbon freight transport by 2050.

https://seekingalpha.com/news/3864538-traton-is-a-buy-at-deutsche-bank-due-to-man-upside?utm_source=feed_news_all&utm_medium=referral Traton is a buy at Deutsche Bank due to MAN upside

Russell Falcon

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