Volkswagen: Bank of America raises target price
(CercleFinance.com) - Bank of America on Wednesday raised its target price for the Volkswagen share from 160 euros to 166 euros, on the back of higher second-quarter forecasts.
In a research note, the broker said that on 17 July VW reported a global unit sales decline of just 17.5% for the month of June, which was above its original estimates and is practically half a 34% drop in May.
However, potentially better second-quarter results are expected by the market, it wrote, maintaining a "neutral" rating on the shares.
"While we think these second-quarter results will be strong, we think they are already largely anticipated by consensus," BofA said.
Note that the broker raised its target price for VW's preference shares from 147 euros to 160 euros.
The Volkswagen Group will publish its first-half results on 30 July.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note, the broker said that on 17 July VW reported a global unit sales decline of just 17.5% for the month of June, which was above its original estimates and is practically half a 34% drop in May.
However, potentially better second-quarter results are expected by the market, it wrote, maintaining a "neutral" rating on the shares.
"While we think these second-quarter results will be strong, we think they are already largely anticipated by consensus," BofA said.
Note that the broker raised its target price for VW's preference shares from 147 euros to 160 euros.
The Volkswagen Group will publish its first-half results on 30 July.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.