- Commercial Vehicle reports fourth quarter earnings on March 10; better results in the commercial truck space and strong growth in warehouse automation suggest upside.
- Commercial truck production rates should be much higher in 2021, and CVG should see very strong demand in the warehouse business, while electric trucks will be more about order wins.
- Supplying "picks and shovels" for warehouse automation and shifting toward value-added components for emerging markets like electric trucks should drive higher sustainable margins, but execution is vital.
- Mid-single-digit long-term revenue growth and FCF margins in the mid-single-digits can support a mid-teens fair value, and electric trucks and warehouse automation should offer revenue growth upside.
For further details see:
Commercial Vehicle Still Early In A Major Business Repositioning