DaimlerChrysler "overweight," target price raised

16.05.07 - J.P. Morgan Securities

LONDON, May 16 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on DaimlerChrysler AG (DCX), while raising their estimates for the company. The target price has been raised from ?60 to ?75.

In a research note published this morning, the analysts mention that the company has sold its 80.1% stake in Chrysler to Cerberus and has achieved its chief goal of getting rid of any exposure to Chrysler?s employee liability. Margins at DaimlerChrysler?s Trucks business expanded to 7.2% in 1Q07 in the midst of a challenging North America environment, the analyst say. The EPS estimates for 2007 and 2008 have been raised from ?3.70 to ?4.41 and from ?4.41 to ?5.65, respectively, to reflect the transition to the IFRS accounting system at the company and the margin improvement in the Trucks business.