TRATF - Volvo Managing Surging Orders And Supply Challenges Well But The Market May Already Have Moved On
- Volvo reported strong revenue, earnings, and order growth in Q2, but not all that much better than what the Street expected.
- Supply chain challenges (higher costs and component shortages) are creating more headaches, and the Street may already be anticipating a near-term peak in 2022.
- Volvo has made significant investments into electrification, and is targeting 35%+ sales contributions from electric powertrains in 2030.
- Volvo shares could still have some upside on the basis of a mid-teens multiple on peak EPS, but cyclical stocks like Volvo aren't great buy-and-hold names.
For further details see:
Volvo Managing Surging Orders And Supply Challenges Well, But The Market May Already Have Moved On