Daimler "outperform," target price raised

16.10.07 - Credit Suisse

LONDON, October 16 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Daimler AG (DAI), while raising their estimates for the company. The target price has been raised from ?82 to ?85.

In a research note published this morning, the analysts mention that the company is likely to repurchase 80 million shares next year and another 80 million in 2009, ahead of the current market expectations. The analysts expect Daimler to payout ?2.2 per share in dividends for 2008 and ?2.3 per share for 2009. The truck margin estimate for 2008 has been raised from 4.2% to 6.1% to reflect the upward revision in the US volume estimates ahead of the change of emission standards. The EPS estimates for 2008 and 2009 have been raised from ?5.69 to ?6.29 and from ?7.03 to ?8.60, respectively.