Daimler Truck rises on first day of trading, bucking weaker session for European stocks

Daimler Truck rises on first day of trading, bucking weaker session for European stocks

Against the backdrop of a weaker European stock session on Friday, shares of Daimler Truck Holding rose in its market debut.

Shares of Daimler Truck Holding DTG, made their debut on Germany’s stock market at 28 euros ($31.62) a share, and were last changing hands at €30.47. The initial public offering follows a spinoff of parent Daimler DAI, -12.97%, shares of which fell 15% to €72.96, adjusting for the split.

Berenberg analysts Adrian Yanoshik and Romain Gourvil initiated coverage on Daimler Truck with a provisional buy rating and 35 euro price target. “Daimler Truck’s margins have credible upside from a turnaround already under way in Europe. The group’s self-help gets support from price-mix momentum into a record backlog, with strong freight markets that underpin demand,” they said.

The analysts said they were keeping a buy rating on parent Daimler, with a revised 85 euro price target to incorporate the spinoff, as they expect Daimler Truck will “re-engage investor interest in Daimler.”

“We forecast underappreciated…

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