Buy Signal on Daimler AG (DAI-DE)
Daimler is a €46.5 bn market cap and is one of the world's leading car manufacturers. Revenue is split between 2 segments: 1/ vehicle sales (85% of sales): 3.3 million vehicles sold in 2019, split between private vehicles and light commercial vehicles (61% of sales; 2.4 million units sold; Mercedes-Benz brands, Smart and Maybach) and heavy commercial vehicles (39% of sales; 959,519 units; notably Mercedes-Benz, Fuso, Freightliner, BharatBenz and Setra); 2/ Financial services (15% of sales): financing, insurance services, etc.
Revenues are derived from Europe (40%), United States (26%), North America (4%), China (11%), Asia (13%) and others (6%).
During its Q2-20 release, Daimler signaled signs of sales recovery including Mercedes-Benz passenger cars with best ever Q2 in China and Vans with best ever quarter in China; order intake at Trucks positive in nearly all core regions again.
Short term catalyst: Chinese consumer growth.
This signal is consistent with the renewed bullish momentum on the European Automotive sector