DaimlerChrysler "buy," target price raised

20.11.06 - Deutsche Bank

LONDON, November 20 (newratings.com) - Analyst Jochen Gehrke of Deutsche Bank maintains his "buy" rating on DaimlerChrysler AG (DCX). The target price has been raised from ?50 to ?54.

In a research note published this morning, the analyst mentions that at its Truck Capital market day, the company cited the significant earnings and margin potential of its truck division for the forthcoming years. Enjoying the leading position in the global market, DaimlerChrysler is well-positioned to bolster its high economies of scale, the analyst says. The company would cover the current operating profit margin gap of 300bps to its primary competitor, Volvo, going forward, driven by its improved economies of scale and the launch of its global engine platform in 2007 and the forthcoming potential Fuso turnaround, Deutsche Bank adds.