Volkswagen: Bank of America cuts target price
(CercleFinance.com) - Bank of America announced Friday that it has reduced its target price for Volkswagen shares after last week's investor day dedicated to the German manufacturer's electric vehicles.
While noting that the group remains optimistic about this business over the long term and that the problems linked to the launch of the new ID.3 seem to have been resolved, the broker fears that VW will miss its European targets for CO2 emissions this year. This could penalise results and damage the group's image and could mean that investors would be less prepared to pay a premium for the EV theme in the near term.
Bank of America - which maintains its buy recommendation on the stock - nevertheless prefers to reduce its target on the group's preference shares from 167 euros to 162 euros, while cutting its target price on ordinary shares from 179 euros to 174 euros.
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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.
While noting that the group remains optimistic about this business over the long term and that the problems linked to the launch of the new ID.3 seem to have been resolved, the broker fears that VW will miss its European targets for CO2 emissions this year. This could penalise results and damage the group's image and could mean that investors would be less prepared to pay a premium for the EV theme in the near term.
Bank of America - which maintains its buy recommendation on the stock - nevertheless prefers to reduce its target on the group's preference shares from 167 euros to 162 euros, while cutting its target price on ordinary shares from 179 euros to 174 euros.
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.