Volkswagen: BarCap raises target price.

(CercleFinance.com) - Barclays Capital reiterates its "overweight" rating on Volkswagen's preference shares, raising its target price from 168 euros to 174 euros, after adjusting its forecasts after the group's 2016 results.


After a "confident" capital market day, it is now time for delivery, the brokerage firm says in a nutshell.

While the capital market day may not have acted as a catalyst in the near term, BarCap states that it never expected an "overnight fix," that would "move fast-money investors' views on the name".

"In our view VW is a stock with a slow-burning but long-lasting opportunity for steady improvement, no matter what the auto cycle," the broker writes in a report.

"2020 operating margin targets for the group may not look ambitious, but if VW can achieve delivery on battery electric vehicles (BEVs), increase spending on future mobility and still generate earnings momentum even in a less favourable cycle, we think the stock can outperform peers", BarCap points out in the report.

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