Daimler "overweight," target price raised

31.08.07 - J.P. Morgan Securities

LONDON, August 31 (newratings.com) - Analyst Philippe Houchois of JP Morgan maintains his "overweight" rating on Daimler AG (DAI), while raising his estimates for the company. The target price has been raised from ?75 to ?80.

In a research note dated August 30 and published this morning, the analyst mentions that given the proposed share repurchase worth ?7.5 billion in the forthcoming 12 months, the company?s near-term cash returns are likely to be twice the estimates. The overall costs of a separation from Chrysler have been better than anticipated due to lower-than-expected P&L charges and employee liability, the analyst says. The EPS estimates for 2007 and 2008 have been raised from ?4.75 to ?5.40 and from ?6.16 to ?6.57, respectively.