(News Bulletin 247) – Royal Bank of Canada announced on Wednesday that it had reduced its price target on Volkswagen, which it lowered from 221 to 181 euros while maintaining its ‘outperformance’ opinion on the stock.
In a research note, the Canadian broker explains that VW is now slipping behind Stellantis and GM in the ranks of its favorite values within the sector due to the ‘headwinds’ which are forecast for the next 12-18 months.
“Its exposure to China poses more and more problems in view of its market losses to the benefit of local manufacturers”, worries RBC, which fears that the will displayed by the group to increase its volumes will not be done to the depends on its prices.
The broker, who also judges the consensus forecasts too high, also rules out the prospect of an upcoming ‘monetization’ of assets after the IPOs of Traton and Porsche, which have created little value from the point of view of the automotive group.
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