(News Bulletin 247) – Volkswagen shares were among the biggest declines in the DAX on Friday on the Frankfurt Stock Exchange, penalized by a lowering of Stifel’s recommendation.
The analysts of the American bank have downgraded their advice to ‘hold’ against ‘buy’ before, with a price target almost halved, from 295 to 149 euros.
At 10:00 a.m., the VW title lost 2.1% while the DAX limited its decline to 0.9%.
In a note released in the morning, analysts at Stifel say the stock is ‘running out of catalysts’ after the buoyant factors they were considering around the stock struggled to materialize.
Due to delays in its plans, VW boasts a smaller electric vehicle platform than Tesla or BYD, they point out, which limits the benefits of its economies of scale for consumers.
At the same time, they add, the success of Porsche’s IPO has not had the expected effects on shareholders, while the automotive group’s free cash flow remains burdened by investments.
At its current levels, the action still shows a gain of almost 3% since the beginning of the year.
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