DaimlerChrysler "buy"

20.09.06 - Merrill Lynch

LONDON, September 20 (newratings.com) - Analysts at Merrill Lynch maintain their "buy" rating on DaimlerChrysler (DAIC-EUR). The target price is set to ?50.

In a research note published this morning, the analysts mention that the company has indicated that it had to significantly cut production in 3Q and 4Q on account of over-optimistic sales estimates and its failure to gauge the extent of deterioration in the performance. DaimerChrysler has reduced its earnings guidance for 3Q and 4Q from -?500 million to -?1.2 billion and from ?300-?400million to breakeven, respectively. The company plans to undertake structural measures in order to reduce the possibility of a recurrence, the analysts say.