Research Update: Automaker Daimler Outlook Revised To Positive From Stable On Improved Cash Flow Prospects; 'BBB+/A-2' Ratings Affirmed

Germany-headquartered global car and truck maker Daimler AG reported 16% revenue growth and a 14% EBIT margin in its Cars&Vans division in first-quarter 2021 and has raised its guidance for the segment, indicating stronger prospects for profitability and cash flows this year. At the same time, electrified vehicles (EVs) continue to make up 10% of Daimler's total car sales and the company launched three further key battery-electric vehicles (BEVs) under its EQ brand this year. As a result, we have raised our forecast for Daimler's adjusted EBITDA and free operating cash flow (FOCF) in 2021 and 2022, and we believe recent model launches are likely to solidify its position in the EV market. We are therefore revising our

...- Germany-headquartered global car and truck maker Daimler AG reported 16% revenue growth and a 14% EBIT margin in its Cars & Vans division in first-quarter 2021 and has raised its guidance for the segment, indicating stronger prospects for profitability and cash flows this year. - At the same time, electrified vehicles (EVs) continue to make up 10% of Daimler's total car sales and the company launched three further key battery-electric vehicles (BEVs) under its EQ brand this year. - As a result, we have raised our forecast for Daimler's adjusted EBITDA and free operating cash flow (FOCF) in 2021 and 2022, and we believe recent model launches are likely to solidify its position in the EV market. - We are therefore revising our outlook on Daimler to positive from stable and are affirming our '###+/A-2' long- and short-term ratings on the company and its debt. - The positive outlook indicates that we could raise the rating in the next 12-24 months if Daimler continues to build its market...

Research Update