LONDON (ShareCast) - JP Morgan has showed its optimism over German auto company Daimler (Xetra: 710000 - news) and raised the stock's price target target from €44 to €49. The US investment bank highlights the Daimler's positive outlook for 2012 operating earnings as a result of confidence in end-markets and favourable exchange rates, noting that the firm intends to keep vehicle prices robust this year. On the other hand, JP Morgan says that the company's investment plan over the following years will have a negative impact on available cash flows. For this reason, the broker maintains a neutral recommendation and favours sector peers Volkswagen (Xetra: 766400 - news) and BMW (Xetra: 519000 - news) , which will also benefit from end-market dynamics but have better product cycles and are less likely to raise investment spending. Shares of Daimler were trading 0.36% higher at €46.84 in afternoon trade in Frankfurt. S.B.
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