DaimlerChrysler "overweight," estimates reduced

14.03.07 - J.P. Morgan Securities

LONDON, March 14 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on DaimlerChrysler AG (DCX), while reducing their estimates for the company. The target price is set to ?60.

In a research note published this morning, the analysts mention that the company is expected to benefit going forward from the sale of the Chrysler unit ahead of the UAW negotiations, slated to commence in summer. JP Morgan expects the deconsolidation of Chrysler to result in up to 16% EPS upside in 2008. The adjusted EPS estimates for 2007 and 2008 have been reduced by 4% and 3%, respectively, to reflect a forecast revision for EADS and DaimlerChrysler?s reduced stake in the former company.