Volkswagen: Stifel still a buyer
(CercleFinance.com) - Stifel maintains its Buy rating on Volkswagen shares, with an unchanged target price of E149.
VW has announced its intention to restructure the Audi plant in Brussels, where production has fallen from around 120,000 units in 2012 to less than 40,000 units by 2024. At the end of the process, the plant could be closed, the analyst reports.
The costs associated with the potential closure of the plant, as well as the deconsolidation of VW Financial Services RUS and the closure of MAN Energy's gas turbine business, amount to E1.7bn, a sum that comes on top of the E900m in costs for termination agreements already announced by VW.
Stifel reports that the previously undisclosed costs of E1.7bn are equivalent to a 0.53 percentage point reduction in EBIT margin.
VW is also reducing its EBIT margin forecast for 2024 from 7%-7.5% to 6.5%-7.0%, while FCF forecasts remain unchanged.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
VW has announced its intention to restructure the Audi plant in Brussels, where production has fallen from around 120,000 units in 2012 to less than 40,000 units by 2024. At the end of the process, the plant could be closed, the analyst reports.
The costs associated with the potential closure of the plant, as well as the deconsolidation of VW Financial Services RUS and the closure of MAN Energy's gas turbine business, amount to E1.7bn, a sum that comes on top of the E900m in costs for termination agreements already announced by VW.
Stifel reports that the previously undisclosed costs of E1.7bn are equivalent to a 0.53 percentage point reduction in EBIT margin.
VW is also reducing its EBIT margin forecast for 2024 from 7%-7.5% to 6.5%-7.0%, while FCF forecasts remain unchanged.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.