The electrifying story of Daimler Ag - strategy shift marks a new beginning for Mercedes

Abstract

This report aims at providing an independent valuation on Daimler AG. It explores the future of Daimler as a pure-play premium vehicle manufacturer at the same time it makes the transition to electrification, marking a significant strategy shift that will change the competitive landscape of the automotive industry. While the company’s stock price experienced a rally in 2021, and Daimler spun-off its Truck & Buses unit, there is further upside as both the electrification and cost saving strategies have not yet been priced in by the market, as implied by the December 2022 price target of €84.9.