The automotive sector has always been an interesting area for both traders and value investors alike.  

With the Electronic Vehicle (EV) sector making continuous headlines with newcomers, this week we want to shine some light on a classic automotive stock which has stood the test of time in both industry challenges and consistent growth: Daimler (DDAIF).

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Daimler AG experienced a sudden 11% rise in October 2021, making headlines due to the announcement of their new independent truck and bus business, Daimler Truck Holdings AG. They have also announced to rename the company from Daimler AG to Mercedes-Benz Group AG, effective 1 February 2022.  

Aside from this unexpected price spike, analysts are generally positive on the steady and positive growth of Daimler AG, with the majority announcing this stock as a Buy. 

Source: Admirals Contract Specification  

The general analyst opinion of the Daimler AG stock is that it is highly ranked amongst its peers within the group of Consumer Cyclical companies. Daimler has a consensus rating of 2.73, while the average rating amongst this group of Consumer Cyclical companies is 2.53. 

The VGM Score (Value, Growth, Momentum) of Daimler is B, only second best to score A, meaning this stock is an excellent choice for those who have a high priority goal of value investing. 

The Daimler AG may be undervalued according to analysts, and given the company's financial health and growth prospects, it is possible this stock could outperform the market over time.  

With Daimler's plans to invest 40 billion euros between 2022 and 2030 to develop electric battery vehicles (EVs), this is certainly a stock to keep on the Watchlist. Given the possibility that it is currently undervalued, it may be interesting for value investors. 

What are Analysts Forecasting for Daimler Shares? 

The general consensus of stock analysts rate Daimler as a Buy. Based on the historical data of Daimler AG, the stock has on average risen 8% each year based on the total 22 years of performance on the stock market. Based on this information, Daimler could be considered a good long-term stock as a part of a value investment portfolio. 

Source: WSJ, November 10, 2021 

Source: WSJ, November 10, 2021 

Source: MarketBeat, November 10, 2021 

Based on the analyst price target consensus, the highest price target for Daimler AG over the next 52 weeks is USD 134.33. The lowest price target is set at USD 69.48, while the average price target is set at USD 109.35.