Volkswagen Regains Momentum, Reclaiming a Dominant 67% Stake in the Market
VW Stock Recovery: Is It Time to Buy?
The VW stock is currently on the mend after hitting a low of around 80 euros last November. This recovery comes after profit warnings, price drops, and cost-cutting measures. But is this enough to warrant a buy recommendation? Let's dive in.
Porsche SE's Commitment to VW
Last weekend saw some stirring news about VW shareholders. A report suggested that Porsche SE was considering selling part of its VW shares, causing initial shock among investors. However, Porsche SE quickly dashed such rumors, stating there were no current concrete plans or discussions in 2024. Furthermore, no talks were held with investors, and they maintain their role as a long-term anchor shareholder. This commitment was reflected in the VW stock's performance on Monday.
UBS' New Rating: Neutral
UBS recently adjusted its price target for Volkswagen from 75 to 105 euros. While this might not immediately attract the critical VW investors, analyst Patrick Hummel expects tailwind for sales and progress on the results side. Yet, concerns about the China business persist, keeping a buy recommendation at bay. The revised rating from "Sell" to "Neutral" should provide some positive momentum to the VW stock.
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Considering a Buy? Proceed with Cautious Optimism
The mood around the VW stock has improved in recent weeks, and the highest price targets of analysts promise an upside of over 67 percent to around 180 euros. However, investors should exercise caution, as the current rating on certain platforms remains "Sell." With the ongoing transformation toward sustainable mobility and a potential favorable rating change by UBS, the VW stock could be an attractive long-term investment opportunity.
(This article contains material from dpa-AFX)
Conflict of interest noticeThe publisher Börsenmedien AG's board and majority shareholder, Mr. Bernd Fötsch, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication.
Conflict of interest notice:The managing editor-in-chief, Mr. Frank Pöpsel, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication.
- In light of UBS's revised rating for Volkswagen from "Sell" to "Neutral", and the potential progress on the results side, some investors might be considering a buy for VW stock, but it's advisable to proceed with cautious optimism due to the ongoing concerns about the China business and the current rating of "Sell" on certain platforms.
- The VW stock's continued commitment from shareholders like Porsche SE, despite the initial shock caused by rumors of potential share sales, indicates a long-term investment opportunity, especially considering the upside potential of over 67 percent to around 180 euros as predicted by some analysts, and the potential favorable rating change by UBS.
