DaimlerChrysler "buy," target price raised

10.07.07 - UBS

LONDON, July 10 (newratings.com) - Analysts at UBS maintain their "buy" rating on DaimlerChrysler AG (DCX), while raising their estimates for the company. The target price has been raised from ?75 to ?90.

In a research note published this morning, the analysts mention that although the company?s truck business would generate industry leading returns going forward, its margins are weak, as compared to that of the majority of the peers. According to the analysts, the restructuring of DaimlerChrysler?s truck business is inevitable and would yield rapid benefits going ahead. There is an increased likelihood of cash distribution to the company?s shareholders, UBS adds. The EPS estimate for 2008 has been raised from ?5.20 to ?5.65.