Volkswagen: Berenberg starts to monitor on 'hold'
(CercleFinance.com) - On Tuesday Berenberg began to monitor the Volkswagen's stock with a "hold" rating and a target price target of 175 euros as part of a broader study of the automotive sector.
In its comments, the analyst points out that VW has not failed to live up to its reputation by unveiling a technology platform that was fully dedicated to electric vehicles early on.
However, Berenberg believes that its target of identical margins in combustion and electric vehicles within two years may be difficult to achieve, given the high costs of battery production at present.
It is also concerned about the group's high exposure to China - now its largest market - where the drop in incentives for electric conversion and confinements could well weigh on the business, at a time when competition is beginning to intensify.
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