DaimlerChrysler upgraded to "buy"

Wednesday, July 19, 2006 7:27:22 AM ET
Dresdner Kleinwort Wasser.

LONDON, July 19 (newratings.com) - Analysts at Dresdner Kleinwort upgrade DaimlerChrysler (DCX.ETR) from "add" to "buy." The target price has been reduced from €52 to €49.

In a research note published this morning, the analysts mention that Chrysler has restructured its business successfully and new products and engines differentiate its brands from those of GM and Ford. Although Chrysler is likely to post losses in 2Q and 3Q, the volatility in its inventory appears temporary, the analysts say. Chrysler is poised to benefit from its new Minivan and Jeep models from 4Q onwards, Dresdner Kleinwort adds. Chrysler’s implicit current value does not reflect the unit’s potential, according to the analysts.