(News Bulletin 247) – Stifel on Monday renewed its buy recommendation and its target price of 295 euros on Volkswagen shares following the publication of the annual results last Friday.

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‘The group surprised with very optimistic outlook and at the closing price on Friday the action was up 11%’, notes the analyst.

For the record, VW said it expects unit sales up 15% to 9.5 million units this year, a target higher than forecast, for revenues up 10% to 15% (consensus: +0.6 %) and an EBIT margin of 7.5% to 8.5% (consensus: 7.4%).

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For Stifel, the low end is about 16% above consensus, and the high end about 37% above consensus.

‘These confident outlook is at odds with a very negative sentiment around the value and a significant underperformance of the action since the start of the year’, recalls the analyst.

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