Citi opens 30-day upside catalyst watch on Volkswagen AG
Investing.com | Author Sam Boughedda
Published Feb 23, 2024 08:30AM ET
Citi opens 30-day upside catalyst watch on Volkswagen AG (VWAGY)
Citi analysts opened up a 30-day upside catalyst watch on Volkswagen AG (OTC:VWAGY) in a note Friday, maintaining a Buy rating and €158 price target on the stock.
Analysts at the bank said the company's fourth-quarter results announcement on March 13 is the catalyst. They expect the company to release solid earnings and guide better than the still-low consensus earnings for FY24.
"Citi is 5%+ above FY24E VW EPS consensus. We expect VW net cash to increase to over €41bn," wrote the firm. "Like MBG, we think VW may over-deliver on FCF and net cash for FY23 due to lower Q4 inventory – which may force a pre-release (as with MBG)."
Citi adds that while VW may not start a buy-back now, the net industrial cash of €80+ per share could be re-valued in a sector-wide context.
"VW remains cheaper than any other EU OEM," added Citi. "Adjusted for Porsche (€113) and Finco equity (€80), the core is valued at minus €60. VOW3 is up 10% ytd, but the VOW Ords are up 17% – widening the VW pref discount gap."
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.