Volkswagen: Stifel maintains buy rating before Porsche IPO
(CercleFinance.com) - Stifel maintains its buy rating on Volkswagen (VW) shares, along with its target price of 295 euros.
For the analyst, "the Porsche IPO is well covered in a valuation range of E70bn to E85bn".
Stifel believes that the lower end of this range implies a valuation of VW stock, at c.1.4x PE ratio and 53% free cash flow yield... Also, VW will pay some E17 in a special dividend and E11 in a regular dividend in the coming months.
Analysts noted that the group's forecasts for 2022 and 2023 are in line with their own for Porsche's sales and EBIT "and our estimates for 2024-25 are in line with management's forecasts (7.5% sales, EBIT margin of 17-19%).
"The 2024-25 estimates are in line with management's guidance (7.5% top-line CAGR, 17-19% EBIT margin)".
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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.
For the analyst, "the Porsche IPO is well covered in a valuation range of E70bn to E85bn".
Stifel believes that the lower end of this range implies a valuation of VW stock, at c.1.4x PE ratio and 53% free cash flow yield... Also, VW will pay some E17 in a special dividend and E11 in a regular dividend in the coming months.
Analysts noted that the group's forecasts for 2022 and 2023 are in line with their own for Porsche's sales and EBIT "and our estimates for 2024-25 are in line with management's forecasts (7.5% sales, EBIT margin of 17-19%).
"The 2024-25 estimates are in line with management's guidance (7.5% top-line CAGR, 17-19% EBIT margin)".
Copyright (c) 2022 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.