DaimlerChrysler "buy," target price reduced

15.06.06 - Deutsche Bank

LONDON, June 15 (newratings.com) - Analyst Jochen Gehrke of Deutsche Bank maintains his "buy" rating on DaimlerChrysler (DAIC-EUR). The target price has been reduced from ?59 to ?55.

In a research note published this morning, the analyst mentions that the macro environment in the US is becoming increasingly challenging. The operating estimates for 2006 and 2007 for the company?s Chrysler division have been reduced from ?1 billion to ?500 million and from ?1.3 billion to ?700 million, respectively, to reflect lower volumes. The 2006 and 2007 earnings estimates for the Mercedes division have been raised by ?250 million and ?200 million, respectively.