LONDON (dpa-AFX) – The British investment bank HSBC now recommends buying the common shares of VW (Volkswagen (VW) vz) in addition to the preferred shares (Volkswagen (VW) vz). While the former were confirmed with “Buy”, the newly responsible analyst Edoardo Spina followed suit in a study on European car manufacturers available on Tuesday with this vote for the second category as well. In contrast to the preference, the ordinary shares are not included in the Dax (DAX 40).
The expert justified the upgrade of the VW ordinary shares with the valuation of the papers. For both VW share classes, he increased his price targets in step from 230 to 234 euros. In comparison, the assets, which have long been rated “Buy”, closed on Tuesday with a plus of 0.5 percent to EUR 154.68, but significantly lower than the ordinary stocks, which rose by 2.0 percent to EUR 209.40.
Spina emphasized that the profit dynamics at the Wolfsburg-based carmaker remain positive in general – despite current disruptions such as the war in Ukraine and the shortage of chips. Volkswagen (Volkswagen (VW) vz) is developing robustly in this situation. He has therefore slightly increased his estimates in view of an expected recovery in the important China business.
The IPO of the VW subsidiary Porsche should also be a decisive positive price driver in the fourth quarter, the expert added. He expects that the plans will promptly return to the focus of investors. The sports car manufacturer, which should not be confused with the VW Holding Porsche SE (Porsche SE Vz), which is listed in the Dax, could be worth 62.5 to 70.5 billion euros according to its calculations.
In general, however, the premium carmaker Mercedes (Mercedes-Benz Group (ex Daimler))-Benz (Mercedes-Benz Group (ex Daimler)) remains the expert’s favorite because of the introduction of electric cars and the strategy to focus more on luxury vehicles. In addition to Mercedes-Benz shares, Spina also rates the other major European automakers BMW, Renault and Stellantis all as “buy”./tih/ck/he
HSBC classifies stocks as “buy” if the price target is more than 20 percent above the current price. If the target is between 5 and 20 percent above the current price, the rating can also be “Hold”.
Publication of the original study: 05/27/2022 / 14:11 / GMT First distribution of the original study: 05/30/2022 / 15:36 / GMT
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