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barclays downgrades volvo traton and daimler truck amid market uncertainties

Barclays has downgraded Volvo, Daimler Truck, and Traton in the European truck sector, citing increasing tariffs, macroeconomic, and regulatory risks, particularly in North America. Analysts express concerns over the sustainability of the sector's recent performance and warn that optimistic market expectations for 2025 may be misplaced. Volvo's stock was cut to Underweight due to margin misses and a challenging outlook, while Traton and Daimler face pressures that limit near-term growth prospects.

barclays downgrades volvo daimler and traton amid rising market uncertainties

Barclays has downgraded Volvo, Daimler Truck, and Traton in the European truck sector, citing increasing tariffs, macroeconomic, and regulatory risks, particularly in North America. Analysts express concerns over the sustainability of the sector's recent performance and warn that optimistic market expectations for 2025 may be overly ambitious. Volvo's stock was specifically criticized for its recent margin misses and a potentially unrealistic outlook, while Traton and Daimler face challenges from rising pressures and strategic limitations.

Barclays downgrades European truck makers amid tariff and regulatory concerns

Barclays adopts a cautious stance on European truck manufacturers due to rising U.S. tariffs and regulatory risks, which could undermine the current stabilization in Europe, particularly affecting export-driven economies like Germany. The broker warns of potential earnings and cash flow downside risks for the sector, prompting downgrades for Daimler Truck and Traton to "equal-weight" and Volvo AB to "underweight," citing unfavorable valuations and significant foreign exchange challenges.

Barclays downgrades Traton stock amid market uncertainties and investment concerns

Barclays analyst Kai Alexander Mueller has downgraded Traton SE from Overweight to Equalweight, setting a price target of EUR 38.00 due to concerns over market uncertainties in North America and expected volume normalization in Brazil. Despite Traton's recent strong performance and recovery, risks include significant investments in China and unquantified costs from plant ramp-ups affecting margins. Additionally, limited short-term appetite from main shareholder Volkswagen Group for strategic moves may hinder Traton's potential to close its valuation gap with peers.
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