Volkswagen: Stifel still a buyer

(CercleFinance.com) - Stifel has maintained its "buy" rating on Volkswagen shares, with an unchanged target price of 308 euros, although says that it is not particularly fond about the brand's potential arrival in Formula 1 racting from 2026 due to a change in technical regulations.


Citing the FAZ - one of Germany's leading daily newspapers - Stifel says that Audi could buy the McLaren team (a sum of one billion pounds is mentioned) while Porsche is in negotiations with the Red Bull team.

According to Stifel, these projects would not fit well with VW's BEV strategy and the plan to stop developing new combustion engines from 2026. The analyst says that instead management should focus on the transition to electric rather than on the development of racing engines.

For the broker, investors would also prefer to see the group sell certain assets (such as Lamborghini, Ducati and even Porsche...), rather than invest in a brand like McLaren, a loss-maker between 2018 and 2020.

The share is not really speeding off today - up 0.5% in mid-afternoon trading - although is slightly ahead of the market in Frankfurt (+0.3%).



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