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Volkswagen: Bernstein maintains 'outperform' rating.

(CercleFinance.com) - Sanford C.
Bernstein maintains its "outperform" rating on Volkswagen shares, with a target price of 180 euros, citing the group's "surging" free cash flow generation.

In a research report sent to clients, the broker points out that FCF leapt over 80% to 4.3 billion euros over the third quarter.

VW has now generated cash of over 11 billion euros year-to-date and could generate around 15 billion euros over the full-year, Bernstein predicts.

"This sounds spectacular, but we've seen this movie before. And it's a good one," the broker adds.

With Herbert Diess in charge, costs are tumbling and FCF is surging, Bernstein says, adding that Diess is likely to keep cutting fixed costs, opex and purchases.

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