Volkswagen: shares lose ground after downgrade.
(CercleFinance.com) - Volkswagen shares are down over 1% on Monday after Jefferies said downgraded the stock from "buy" to "hold," given insufficient upside.
In early afternoon trading, the shares were down 1% at 128.7 euros, while Germany's main stock index, the DAX, was down just 0.4 percent.
In a research note sent to clients, Jefferies said it not only downgraded its rating on the preferred shares in Europe's largest automaker, but also cutits target price for the stock from 160 euros to 145 euros.
"We recommended patience when we upgraded VW in April and it is needed," the brokerage firm advised in the report.
Jefferies said the downgrade is a mix of revised industry growth assumptions, EU cartel, German diesel costs and less favourable earnings expectations.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
In early afternoon trading, the shares were down 1% at 128.7 euros, while Germany's main stock index, the DAX, was down just 0.4 percent.
In a research note sent to clients, Jefferies said it not only downgraded its rating on the preferred shares in Europe's largest automaker, but also cutits target price for the stock from 160 euros to 145 euros.
"We recommended patience when we upgraded VW in April and it is needed," the brokerage firm advised in the report.
Jefferies said the downgrade is a mix of revised industry growth assumptions, EU cartel, German diesel costs and less favourable earnings expectations.
Copyright (c) 2017 CercleFinance.com. All rights reserved.