Volkswagen: Oddo still a buyer after Porsche rumour

(CercleFinance.com) - Volkswagen is considering an IPO for its subsidiary Porsche, according to sources close to the company interviewed by Germany's "Handelsbatt".


Several banks and advisors are already active, but there are no official mandates yet.

Following this announcement, Oddo confirms its Outperform rating on the stock, with a target price of 250 euros.

Analysts still believe that any IPO could only be partial and limited (25%-30%), as they think that the board is unlikely to accept a loss of control.

They also find it difficult to accept the argument that VW would need the money from a partial IPO of Porsche to finance its transition to electro-mobility, especially as the group has already mentioned a future IPO of the battery unit.

An IPO of Porsche could result in approximately 20 billion euros in net proceeds for VW, compared to the 15 billion euros of adjusted FCF it expected for 2021 and the very strong industrial net cash expected at the end of the year (>25 billion euros), Oddo adds.

The VW share is currently down over 1%.


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