Traton Stock: Long-term Potential

Last Updated: 7. Dezember 2023By

Shares of Traton have been significantly rising due to a strong start to the year in 2023. In the last few weeks after the quarterly figures, the stock has been able to gain and is now trading above the 20 Euro mark (as of December 7th, around 10 am). The Q3 figures would have likely given more tailwind if the order situation due to the weak economy had not been a cause for concern. The order intake in the upcoming quarters could determine the direction in the short term. In the long term, however, the outlook for the commercial vehicle manufacturer looks good – a low P/E ratio and a relatively weak performance since its IPO in 2019 are in favor of the title.

Traton presented strong Q3 figures and fewer orders With a turnover of 34.2 billion euros (plus 20 percent compared to the previous year) and an adjusted operating result of 2.9 billion euros (plus 117 percent) after 9 months of the year, Traton presented strong figures. However, the order intake could not keep up – above all, the weak economy had an effect on the SDAX company.

How the order situation will develop in the coming quarters is likely to be decisive for the short-term development of the Traton share. If there are further problems here and the situation does not improve significantly next year either, this will probably also affect the outlook for 2024. In such an environment, price increases would be difficult to imagine.

Traton share not overvalued Nevertheless, the long-term prospects for the Traton share are positive. After all, the demand for commercial vehicles will not completely collapse and the transformation to electric models in commercial vehicles has only just begun. Investors should also note that the Traton share has not performed well since its IPO in 2019 – the stock market year 2023 is the exception here with more than 40 percent price gains.

Especially fundamentally, the outlook for the Traton share remains good: the P/E ratio is in the low single-digit range and the dividend yield is currently just under 3.5 percent. Given the billions of sales and profits, there is still room for improvement in the medium and long term.