Daimler AG’s (Daimler) 1Q 09 revenues were above our estimate while operating and net performance significantly underperformed our expectations. We are likely to revise downwards our estimates in our next update report in light of a weak Management outlook, coupled with weaker than anticipated operating and net performance in 1Q 09. Hence, our outlook for the company remains…

Daimler AG’s (Daimler) common stock achieved our target price on 23 February 2009. We are likely to revise downwards our estimates in our next update report, in light of weak Management outlook, coupled with severe recession in the company’s key markets, such as Western Europe and the US. Hence, our outlook for the company remains unchanged and consequently, although the common stock target price does not support a SELL rating at current price levels, we reiterate our…

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We remain concerned over Daimler’s significant reliance on Western Europe (45.4% of revenue) and the US (19.3% of revenue), which are expected to experience significant decline in demand for automobiles over the next 2 years, associated with slowing global economic growth and a tighter credit market. J.D. Power and Associates, an automobile consulting company, expects vehicle sales in the US to decline 15.5% y-o-y and 2.9% y-o-y…