(News Bulletin 247) – Oddo BHF confirms its ‘outperformance’ rating on Volkswagen’s preferred shares, with an unchanged target price of 165 euros.
The manufacturer yesterday presented its new paradigm, namely ‘value overvolume’ with the idea, therefore, of favoring ‘the creation of sustainable value over growth in volume’.
According to Oddo BHF, these strategic orientations are ‘relatively consensual’ but are ‘undoubtedly in the right direction’. However, they will require ‘an execution which has so far been lacking, in particular because of a governance that is far from exemplary’.
Volkswagen’s management also “largely insisted on the necessary reduction in fixed costs”, particularly in Europe where the manufacturer is aiming for a 10% reduction in capacity and should benefit from the natural attrition of its workforce, but also on the need to to be better organised, underlines the broker.
Financially, the manufacturer is targeting 5-7% growth in turnover per year by 2027 (400 billion euros). ‘VW has also notably clarified its ambitions for its PowerCo battery entity, recalling the possibility of an IPO’, reports Oddo BHF.
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