DaimlerChrysler Hits New 52-Week High

Associated Press 11.16.06, 2:28 PM ETShares of DaimlerChrysler AG hit a fresh 52-week high Thursday for the second-consecutive day, as the automaker marked five-straight days of gains.

In afternoon trading, DaimlerChrysler (nyse: DCX - news - people ) shares were up $1.10 to $61.95 on the New York Stock Exchange, after climbing as high as $62.24 earlier in the day.

On Wednesday, DaimlerChrysler's stock closed up 89 cents at $60.85, after setting a 52-week high of $60.94 earlier in the session.

Bank of America (nyse: BAC - news - people )'s Ronald A. Tadross on Wednesday boosted his price target for the German-American automaker to $58 from $49, but maintained his "Neutral" rating for the stock.

Tadross also increased his earnings predictions for the company to reflect an expected $1.5 billion in incremental restructuring savings at the company's Chrysler division.

"DaimlerChrysler's restructuring initiative at Mercedes should help improve margins but we believe Mercedes will have to cut prices to address the $2,500 cost of ownership gap against competition," Tadross wrote in a note to investors.

"This could take some time to play out but increased competition from Japanese brands in Europe could trigger the pricing actions."

Tadross said that expectations of 33 percent earnings growth in 2007 could be "optimistic," because the Chrysler division's results may not significantly improve and commercial truck sales declines could cut into its profit.