DBS analyst Elizabelle Pang maintained her bullish stance on 0P6N stock and assigned a rating on August 2.
Elizabelle Pang assigned her buy score due to a combination of points that reflect Volkswagen’s strong position in the market and its strategic expansion initiatives. Volkswagen, as the world’s largest OEM, has a varied and extensive portfolio of automobile brands that serve market segments, adding the mass market. , sports and luxury vehicles. This portfolio not only provides Volkswagen with the largest share of the global automotive market, but also allows it to maintain strong margins, especially in its luxury segment. Additionally, Volkswagen’s competitive push toward electric vehicle (EV) production positions the company as an emerging leader in the battery electric vehicle (BEV) market, surpassing its former American automotive competition in terms of BEV unit deliveries.
Despite a recent profit shortfall attributed to weaker joint venture performances, specifically in the competitive Chinese market, Pang sees positive prospects thanks to planned product launches and cost-cutting measures. Volkswagen’s upcoming collaborations, intensified battery factory operations, and potential mergers and acquisitions are expected to generate positive momentum. In addition, Pang’s assessment considers Volkswagen’s current value to be at historically low future value-to-earnings ratios, suggesting undervalued inventory with room to grow. While there are risks such as market demand and the execution of Volkswagen’s BEV strategy, those issues are offset by the company’s overall strengths and long-term outlook, justifying the Buy score with a lower target price to reflect existing market conditions.
According to TipRanks, Pang is a 2-star analyst with an average return of 0. 3% and a success rate of 41. 67%. Pang covers the discretionary client sector, focusing on stocks such as Mercedes-Benz Group, Tesla and Bayerische Motoren Werke Aktiengesellschaft.
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