Volkswagen: Oddo raises target price and estimates

(CercleFinance.com) - Volkswagen has announced Q1 underlying operating income that is up 14% at 4.
8 billion euros.
The corresponding margin has therefore improved by 0.9 point to 8.1% for sales that are up 3.1% at 60 billion euros (expected to fall 0.7%). Following this publication, Oddo has confirmed its Buy rating on the stock, having raised its target price from 182 euros to 184 euros (Sum-of-the-parts) following the sector's recent appreciation.

The VW group has positively surprised the market, Oddo says, adding that this performance is partly due to 0.4 billion euros in gains on the valuation of financial hedging instruments, analysts explain.

Oddo notes that the VW brand has resisted well with underlying OP that is up 4.8% (OM of 4.3% or -10 bp).

Analysts believe that Q2 should see a significant improvement in sequential terms (recovery in invoices, thanks to improved availability of models at Audi and Porsche).



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