(News Bulletin 247) – Stifel announced on Friday that it had downgraded its advice on the Volkswagen stock to ‘hold’ against ‘buy’ previously, with a price target almost halved, from 295 to 149 euros.
In a note released in the morning, analysts at the American bank judge that the title is ‘short of catalysts’ after the buoyant factors they envisaged around the value 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.
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