Daimler Chrysler "overweight," target price reduced

18.09.06 - J.P. Morgan Securities

LONDON, September 18 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Daimler Chrysler (DAIC-EUR), while reducing their estimates for the company. The target price has been reduced from ?52 to ?50.

In a research note published this morning, the analysts mention that the company has issued another profit warning indicating that the 3Q losses at its Chrysler unit are likely to be higher than the previous guidance by ?700 million. Daimler Chrysler is expected to undertake restructuring and/or portfolio change in 2007, the analysts add. The adjusted EPS estimates for 2006 and 2007 have been reduced by 19% and 9%, respectively.