Breaking! DaimlerChrysler Gets The Thumbs Up-Grade From Dresdner Kleinwort


Ja, the London and Frankfurt based investment bank has given a big thumbs up to DaimlerChrysler and moved them from the "Add" to "Buy" category. But at the same time, the article on the news is somewhat interesting:

"The target price has been reduced from 52 to 49...the analysts mention that...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."

So wait — they're going to lose money over the next two quarters, have some inventory volatility and you've lowered the price target — but models they've yet to release will make them money and we should consider investing? This makes sense how?

DaimlerChrysler upgraded to "buy" [newratings.com]

Related:
Breaking: DaimlerChrysler Sees Profits; Does Not Cite Underpants Gnomes - Jalopnik Disappointed [internal]