DCX Stock update

0955 GMT [Dow Jones] Merrill Lynch says the market may be failing to credit the progress DaimlerChrysler (DCX.ETR) has made in turning around its Chrysler division. Says despite a rapid recovery at Mercedes and actions to improve the situation at Smart, concerns over Chrysler have caused DaimlerChrysler stock to slump by 18% since February. The brokerage believes Chrysler's 3Q remedial actions and rolling product renewal program will bear fruit, adding that new products are promising. This could "soon cause investors to reconsider their position on one of the sector's biggest laggards." Therefore keeps Daimler rated buy, with EUR58 target. Shares -1.1% at EUR39.69. (HAD)