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Mercedes sees sales stabilizing by year-end despite chip turmoil

Re-rating potential

Maintaining strong profitability would go a long way toward achieving the desired re-rating of Daimler shares, which also may be due for a boost from the planned separation of Daimler Truck later this year.

Investors are scheduled to vote on the spinoff at an extraordinary shareholder meeting on Oct. 1.

Daimler has said Mercedes will retain a 35 percent stake in the truck company. The automaker has pledged to keep the truck shares for three years, though the agreement does include a possible option to divest shares after one year.

While investors and analysts have praised the truck spinoff, Daimler’s stock still trades at lower earnings multiples than luxury goods and technology companies.

“The current valuation doesn’t fully reflect the potential of the company yet, but it should become visible once the separate listing of the truck unit has been finalized in December,” Wilhelm said.

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