Volkswagen: heading for 'decent' Q2 performance (Oddo)

(CercleFinance.com) - Analyst firm Oddo BHF announces this Wednesday that it confirms its 'buy' recommendation for the share of the German automobile group Volkswagen ahead of quarterly results which should be "decent".


Q2 performance (generally the best quarter in terms of seasonality) will be respectable but current profitability should be less than that in Q2 2018 and in line with Q1 2019, because of unfavourable base effects, comments the broker.

Anticipating a confirmation of 2019 guidance, Oddo BHF confirms its target price of 184 euros, for an upside potential of +19%. Despite the obstacles and constraints related to a governance that has some room for improvement, the management seems determined to transform the group. A more active policy in terms of alliances (Ford) should reinforce the group's strategy, an update to which is expected between now and November, as the analyst indicates.

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