DaimlerChrysler "overweight," estimates raised

26.10.06 - J.P. Morgan Securities

LONDON, October 26 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on DaimlerChrysler (DCX), while raising their estimates for the company. The 12-month target price is set to ?50.

In a research note published this morning, the analysts mention that the steep improvement in Mercedes' margins in the previous quarter reaffirms that the E Class is the primary profit driver. Despite an implied deterioration of ?150 million in 4Q, the DaimlerChrysler has maintained its operating profit guidance of ?5 billion for the year. The adjusted EPS estimate for 2006 has been reduced by 5% to ?3.21.