DBS analyst Elizabelle Pang upgraded the rating on Volkswagen (0P6N – Research Report) to a Buy today, setting a price target of €135.00.
Elizabelle Pang’s rating is based on several positive developments surrounding Volkswagen’s operations and market position. A significant factor is the anticipated easing of EU CO2 regulations, which would provide Volkswagen with a more flexible compliance timeline, thus reducing potential costs associated with fines and carbon credit purchases. This regulatory change is expected to benefit Volkswagen significantly due to its lower BEV mix compared to other European automakers.
Additionally, Volkswagen’s strategic initiatives, such as the launch of new electric vehicle models and improving sales in China, contribute to a positive outlook. The company’s extensive product portfolio, which spans mass-market, sports, and luxury segments, helps mitigate margin pressures and supports strong financial performance. Despite challenges in the Chinese market, Volkswagen’s current valuations present an attractive risk-reward opportunity, leading to the upgrade from a Hold to a Buy rating with a target price of EUR135.
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