Volkswagen: RBC still a buyer, cuts target price
(CercleFinance.com) - On Wednesday Royal Bank of Canada reduced its target price for Volkswagen shares from E160 to E140 in anticipation of "weaker than expected" H2 business.
In its comments, the broker nevertheless said that it is maintaining its "outperform" rating on VW shares, saying that it was particularly encouraged by the carmaker's significant progress in the Chinese market.
RBC also highlights a solid order book of about 150,000 units in electric vehicles, thanks to a recent spike in activity, while acknowledging that this figure is below the group's initial targets due to the slowdown in the economy.
The broker points out that its earnings estimates for 2024 are now below the consensus.
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