German automaker Daimler AG (DDAIF) will be renamed to Mercedes-Benz Group AG on February 1, a report published by Reuters said.
Ola Kaellenius, the CEO of Daimler, expects the move to boost the company’s valuation, which currently stands at €77 billion.
The name change comes almost a year after Daimler announced the spinoff of its truck and bus division.
Daimler is engaged in the production and sale of cars, trucks, buses, vans and bikes. Its brands include Mercedes-Benz, Mercedes-AMG, Smart Automobile, Detroit Diesel, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta, Denza, KAMAZ and BAIC Motor.
DDAIF stock lost 1.4% in the extended trading session on Friday to close at $77.50.
Wall Street’s Take
Last week, Thomas Besson from Kepler Capital maintained a Buy rating on Daimler with a price target of $100.39 (27.7% upside potential).
Additionally, RBC Capital analyst Tom Narayan reiterated a Buy rating on the stock with a $95.92 price target (22% upside potential).
Overall, the stock has a Strong Buy consensus rating based on 14 Buys and 3 Holds. The average Daimler stock price prediction of $102.10 implies around 30% upside potential. Shares have gained 33.8% over the past year.
TipRanks data shows that financial blogger opinions are 90% Bullish on Daimler, compared to the sector average of 71%.
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