Analyst Note| Richard Hilgert |
No-moat rated Daimler has completed the spin-off of its truck and bus operations, retaining a 35% equity stake in the new company, now called Daimler Truck AG. In 2020, Daimler Truck accounted for 23% of consolidated revenue and 8% of group adjusted EBIT. Removing the operations from our discounted cash flow model resulted in a EUR 7 reduction in our fair value estimate to EUR 77 from EUR 84. The remaining operations of Daimler AG, soon to be renamed Mercedes-Benz, include premium and luxury passenger vehicles and light commercial vans as well as Daimler Mobility, which includes financial services and other mobility services like ride-hailing. The 3-star rated shares of Daimler AG currently trade at 4% discount to our new fair value.