Volkswagen: Jefferies switches directly from sell to buy

(CercleFinance.com) - On Tuesday, Jefferies upgraded Volkswagen shares directly from "underperform" to "buy", raising its target price for them from E115 to E150.


In its comments, the US broker justifies this double upgrade by the sense of capitulation surrounding the stock, believing that what was likely to go wrong at VW has already gone wrong.

Beyond current projects, the broker prefers to focus on the strategic changes that are driving the car maker after benefiting from a business model that enabled it to generate surplus capital for several decades, and on its cost lag vis-à-vis Stellantis.

Jefferies also believes that VW's trajectory is pretty inert, although stresses that the stock's current price presents an attractive entry point for the improvement that could materialise in 2024.


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