Volkswagen: UBS confirms its recommendation on the stock
(CercleFinance.com) - The group has announced a reduction in its targets for the 2024 financial year 'in view of a difficult market environment and developments that have not met initial expectations'.
Following this announcement, UBS confirms its Sell recommendation with a price target of E84.
The deterioration of the environment leads to a downward revision of 15% compared with the 2024 consensus; before the restructuring of Germany, the downside risk is around 30% compared with the 2025 consensus', says UBS.
Now expecting to deliver only around nine million vehicles to its customers, the German automaker now expects annual sales of around 320 billion euros. In terms of profitability, it is now only targeting an operating profit of around 18 billion euros (corresponding to a margin on sales of around 5.6%).
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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.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Following this announcement, UBS confirms its Sell recommendation with a price target of E84.
The deterioration of the environment leads to a downward revision of 15% compared with the 2024 consensus; before the restructuring of Germany, the downside risk is around 30% compared with the 2025 consensus', says UBS.
Now expecting to deliver only around nine million vehicles to its customers, the German automaker now expects annual sales of around 320 billion euros. In terms of profitability, it is now only targeting an operating profit of around 18 billion euros (corresponding to a margin on sales of around 5.6%).
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.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.