Morgan Stanley has named Daimler Truck Holding AG its top pick in the global truck market, raising its price target to €47 and keeping an overweight stance. The brokerage cut Traton to underweight, lowering its target to €32, citing weak demand that is expected to linger through 2026. Analysts warn that North America will see a mid‑single‑digit decline in heavy‑duty truck sales, while modest growth in Europe could offset the downturn.

The bank praised Daimler Truck for its strong North American presence and a shareholder‑return strategy that yields about 8%. U.S. tariffs are projected to dent 2026 earnings, but mitigation plans are in place. Traton faces near‑term pressure from a ramp‑up at its China factory and Section 232 tariffs, though the firm could benefit from European infrastructure and defence spending in 2027. The downgrade reflects short‑term headwinds, while the bank keeps Volvo and PACCAR at equal‑weight with raised targets. Investors should watch how tariff adjustments and regional demand shifts play out in the coming months.