Volkswagen: Jefferies downgrades to 'hold'

(CercleFinance.com) - Jefferies has downgraded its rating on the German auto giant Volkswagen from "buy" to "hold," saying that it is not sure whether VW can "execute.
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For the US broker, the group's ambitions are still at odds with governance and balance sheet, even after executives sharing their frustrations over the share price, governance and portfolio.

In its report, Jefferies questions "how much" and "how fast" management can deliver, given the group's balance sheet that is more adequate than strong, and the carmaker's dual-class share structure.

Jefferies now has a target price of 160 euros for the share, against 180 euros previously.

VW shares are currently trading up 0.7% at 150 euros.

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