Volkswagen (0P6N – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Elizabelle Pang from DBS maintained a Buy rating on the stock and has a €135.00 price target.
Elizabelle Pang’s rating is based on several strategic and financial factors that position Volkswagen favorably in the market. The company has demonstrated strong performance with better-than-expected margins, aided by favorable foreign exchange rates. Despite facing challenges in China, Volkswagen’s extensive product portfolio, including a wide range of car brands from mass-market to luxury, helps mitigate margin pressures and maintains its competitive edge.
Volkswagen is also benefiting from regulatory changes in Europe, which provide more flexibility in CO2 compliance, reducing potential compliance costs. The company’s strategic initiatives, such as launching new electric vehicle models and expanding its presence in China, are expected to drive growth. Additionally, Volkswagen’s current valuation appears attractive compared to its peers, offering a compelling risk-reward proposition. These factors collectively underpin Elizabelle Pang’s decision to upgrade the stock to a Buy rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a €125.00 price target.
0P6N’s price has also changed moderately for the past six months – from EUR99.901 to EUR111.000, which is a 11.11% increase.