MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: ECB Should Be Close To 2% In Next Quarters -Centeno

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI: US NOV IMPORT PRICES +0.1%

MNI: CANADA Q3 INDUSTRIAL CAPACITY UTILIZATION RATE 79.3%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUTOMOTIVE: Traton (TRAGR Baa2[P]/BBB/NR): CMD

AUTOMOTIVE
BulletCredit Bullets

Credit positive update. A Moody’s upgrade already looked baked in and further ratings momentum appears likely.

  • Traton outlines medium term targets (to 2029) at its CMD.
  • Targeting adj. EBIT margin of 9 to 11%. That’s up from 8.5% expected in 2024. Analyst expectations reflect expected margin expansion already – 9.4% consensus for 2026.
  • Aiming for 20-40% revenue growth, i.e. 5.4% CAGR at midpoint. With 3-6% expected in the years ahead that looks like a bullish projection.
  • It expects to be free of industrial net debt by 2029. That was €7.9bn at FY23 for 1.4x leverage, 1.7x including pensions.
  • Moody’s put Traton on outlook positive in March, mainly due to margin improvement. It already looked on track for an upgrade with leverage, margin and FCF targets already met. 
122 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Credit positive update. A Moody’s upgrade already looked baked in and further ratings momentum appears likely.

  • Traton outlines medium term targets (to 2029) at its CMD.
  • Targeting adj. EBIT margin of 9 to 11%. That’s up from 8.5% expected in 2024. Analyst expectations reflect expected margin expansion already – 9.4% consensus for 2026.
  • Aiming for 20-40% revenue growth, i.e. 5.4% CAGR at midpoint. With 3-6% expected in the years ahead that looks like a bullish projection.
  • It expects to be free of industrial net debt by 2029. That was €7.9bn at FY23 for 1.4x leverage, 1.7x including pensions.
  • Moody’s put Traton on outlook positive in March, mainly due to margin improvement. It already looked on track for an upgrade with leverage, margin and FCF targets already met.