Volkswagen: Oddo BHF cuts target price
(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Volkswagen shares, reducing its target price for them from E125 to E110, after the car maker's statement on Friday evening announcing preliminary Q3 results that fell short of expectations (-14% on EBIT vs.
VA cons.).
VW points to supply-chain difficulties (flooding in Slovenia) and higher product costs, particularly in the Brand Group Core (i.e. volume brands).
The broker says that the car maker will probably remain under pressure, and that the difficulties encountered in negotiations with German trade unions (an outcome is now expected in early December) do not bode well for it.
Nevertheless, guidance remains in line with expectations (the company is still targeting volumes of 9-9.5 million units, sales growth of 10-15%, a sharp rise in Automobile FCF (vs. E4.8 bn) and industrial net cash of E35bn to E40bn), although Oddo BHF believes that the company will have to convince.
Copyright (c) 2023 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.
VA cons.).
VW points to supply-chain difficulties (flooding in Slovenia) and higher product costs, particularly in the Brand Group Core (i.e. volume brands).
The broker says that the car maker will probably remain under pressure, and that the difficulties encountered in negotiations with German trade unions (an outcome is now expected in early December) do not bode well for it.
Nevertheless, guidance remains in line with expectations (the company is still targeting volumes of 9-9.5 million units, sales growth of 10-15%, a sharp rise in Automobile FCF (vs. E4.8 bn) and industrial net cash of E35bn to E40bn), although Oddo BHF believes that the company will have to convince.
Copyright (c) 2023 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.