Volkswagen's stock is facing significant pressure due to operational challenges, leading UBS to lower its price target. The stock is currently trading below its 52-week high, reflecting concerns about the company's performance.
Analysts predict ongoing pressure on operating profits and cash flow beyond 2025, as structural cost issues and corporate restructuring will take time to resolve. Labor tensions have also escalated, with warning strikes disrupting production. The labor dispute revolves around proposed wage cuts and potential facility closures, with critical negotiations scheduled for December 9th.
Despite these challenges, some analysts express cautious optimism, setting an average price target indicating potential upside, although industry transformation and global competition remain ongoing concerns.