Sixt shares benefit from train drivers’ walkout: car rental company also "significantly increased demand" due to rail strike – price target reduction does not affect

Car rental companies are recording more bookings due to the upcoming longest strike in the history of Deutsche Bahn.

“We are currently observing a significantly increased demand nationwide this week,” a spokesman for the listed car rental company Sixt told the Reuters news agency on Tuesday. Its network in Germany includes almost 350 stations.

Competitor Europcar emphasized that it basically still had many free vehicles. “It could be tight up to and including Wednesday, as we have already received numerous bookings,” said Managing Director of Europcar Mobility Group Germany, Tobias Zisik. Europcar has more than 300 stations nationwide.

“BYE BYE RAILWAYS”

The train drivers’ union GDL has called for a strike from Wednesday to Monday. Mediation portals are now aggressively recruiting people who want to switch. “Bye bye Bahnsinn, hello car sharing,” says circular emails from the providerbilliger-mietwagen.de, which provides car sharing offers in addition to rental cars.

Despite increasing demand, car rental companies are giving hope to those who urgently need transportation. “Experience shows that many customers are still rescheduling,” said Europcar manager Zisiki. “This means that there may well be cancellations and rental cars will be available again.” From Thursday things are looking very good again across Germany.

According to economists, the rail strike will cost the domestic economy dearly. “A one-day nationwide rail strike costs around 100 million euros a day in economic output,” said Michael Grömling, head of economic activity at the employer-related German Economic Institute (IW Cologne), to Reuters. With the now announced strike duration of six days, the costs would no longer increase linearly, but would sometimes multiply. “We are quickly approaching a billion euros in damage,” said Grömling.

Commerzbank chief economist Jörg Krämer makes a similar assessment. As a result of the strike, it is estimated that value creation in the transport sector will only fall by 30 million euros per day. “Much greater economic damage would occur if factories had to reduce production due to supply problems,” warned Krämer. “The rail strike is also straining citizens’ nerves and damaging the already tarnished image of Germany as a business location.”

Deutsche Bank Research lowers target for SIXT stocks to EUR 120

Deutsche Bank Research lowered the price target for SIXT from 125 to 120 euros before figures, but left the rating at “Hold”. The new price target reflects his changed estimates for the car rental company, wrote analyst Michael Kuhn in a study available on Tuesday. The background is the declining price trend for used electric vehicles.

The Sixt share temporarily gained 2.35 percent to 95.65 euros in XETRA trading.

Reuters and dpa-AFX brokers

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