Volkswagen: in tense social context, Stifel confirms TP
(CercleFinance.com) - Stifel maintains its buy rating on Volkswagen shares, with an unchanged target price of E135, following a press conference organised by the automaker's Works Council.
The unions are proposing a E1.5bn reduction in wage costs, based on the cancellation of salary increases and the reduction of future bonuses, and are demanding in return a job guarantee and no plant closures, Stifel reports in substance.
In this context, Daniela Cavallo, chairwoman of the works council, declared that major strikes are likely if management maintains its demands.
The union communiqué also mentions an overall earnings improvement target set by management at E17bn for VW, whereas until now only a E10bn performance plan and additional savings of E4bn were known.
The unions insist that shareholders must also contribute, notably through a review of dividend policy, which could have a negative impact on Porsche Holding, VW's dividend beneficiary.
In summary, no decisive progress yet, but the unions recognize the need to cut costs and are continuing discussions, Stifel concludes.
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 a decision-making aid 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.
The unions are proposing a E1.5bn reduction in wage costs, based on the cancellation of salary increases and the reduction of future bonuses, and are demanding in return a job guarantee and no plant closures, Stifel reports in substance.
In this context, Daniela Cavallo, chairwoman of the works council, declared that major strikes are likely if management maintains its demands.
The union communiqué also mentions an overall earnings improvement target set by management at E17bn for VW, whereas until now only a E10bn performance plan and additional savings of E4bn were known.
The unions insist that shareholders must also contribute, notably through a review of dividend policy, which could have a negative impact on Porsche Holding, VW's dividend beneficiary.
In summary, no decisive progress yet, but the unions recognize the need to cut costs and are continuing discussions, Stifel concludes.
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 a decision-making aid 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.