Daimler Chrysler "overweight," target price raised

22.01.07 - J.P. Morgan Securities

LONDON, January 22 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Daimler Chrysler (DCX). The target price has been raised from ?50 to ?55.

In a research note published this morning, the analysts mention that the company is likely to report its FY06 operating profits in-line with the consensus. The analysts expect Daimler Chrysler?s UAW contract to reduce the company?s legacy costs and improve its competitive position in the US going forward. The upward revision in the target price reflects an increase in the valuation of the company?s peer and improving prospects of a decline in the US legacy costs.