DaimlerChrysler "buy," target price reduced

18.09.06 - Dresdner Kleinwort Wasser.

LONDON, September 18 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on DaimlerChrysler (DAIC-EUR), while reducing their estimates for the company. The target price has been reduced from ?49 to ?42.

In a research note published this morning, the analysts mention that the company has raised its operating loss guidance for FY06 from breakeven to -?1 billion. DaimlerChrysler?s recent profit warning was due to legacy costs and excess inventory, the analysts add. The EPS estimates for 2006 and 2007 have been reduced from ?3.45 to ?2.76 and from ?5.68 to ?4.70 respectively.