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UBS has maintained a "Sell" rating on Volkswagen shares, setting a price target of 75 euros, following the company's announcement of over 4 billion euros in cost savings and a voluntary workforce reduction of 35,000 jobs by 2030. Analyst Patrick Hummel expressed skepticism about achieving the targeted core brand margin of 6.5 percent by 2026, noting the absence of a previously proposed ten percent wage cut in the recent agreement, which now only includes a wage freeze until 2027.
UBS has downgraded Porsche SE from "Neutral" to "Sell," reducing its target price from 42 to 32 euros. Analyst Patrick Hummel cited lower share price targets for Volkswagen and Porsche AG, along with anticipated refinancing pressures and weaker dividend prospects starting in 2027.
UBS has downgraded Porsche SE from "neutral" to "sell," reducing its target price from €42 to €32. Analyst Patrick Hummel cited a weakening dividend outlook and anticipated refinancing pressures starting in 2027, following lowered price targets for VW and Porsche AG, in which Porsche Holding has significant stakes.
UBS has downgraded Porsche SE from "Neutral" to "Sell," reducing its target price from 42 to 32 euros. Analyst Patrick Hummel cited weaker dividend prospects and significant refinancing pressure expected from 2027, following lowered price targets for VW and Porsche AG, in which Porsche Holding has substantial stakes.
The European automotive sector is facing significant challenges, with declining sales, job cuts, and labor unrest as companies like Volkswagen and Stellantis struggle to adapt to tighter regulations and shifting market demands. Analysts predict a tumultuous 2025, exacerbated by potential trade wars and stagnant EV demand, leading to unprecedented factory closures and employee protests. The situation reflects a broader economic downturn, with the auto industry’s struggles impacting Germany's economy and political landscape.
UBS has reduced its price target for Volkswagen from 84 to 75 euros, maintaining a "Sell" rating, citing ongoing pressure on operating profit and cash flow. Meanwhile, nearly 100,000 VW employees participated in warning strikes organized by IG Metall, protesting against proposed wage cuts and job losses, signaling strong workforce resistance ahead of upcoming collective bargaining on December 9.
UBS has downgraded Mercedes-Benz Group from "Buy" to "Neutral," reducing its price target from 72 to 55 euros. Analyst Patrick Hummel noted that while the company maintains an attractive dividend story, it faces ongoing pressure on car margins. BMW has emerged as UBS's new top favorite.
UBS has maintained a "Buy" rating on Stellantis with a target price of 16 euros, despite uncertainties surrounding leadership changes. Analyst Patrick Hummel suggests that the automotive group's investment potential could gain traction, positioning it as a compelling option for a turnaround in 2025.
UBS analyst Patrick Hummel has shifted his preference from Mercedes-Benz to BMW, citing improved cash flow and attractive yield prospects for BMW, which saw a 1.5% rise in share price. In contrast, Mercedes-Benz shares fell 1.2% following a downgrade by Barclays, which expressed concerns over the impact of electric vehicle investments and regulatory risks. Despite a recent recovery, both BMW and Mercedes-Benz remain significant underperformers in the DAX for 2024.
UBS has downgraded Mercedes-Benz from "Buy" to "Neutral," lowering its price target from 72 to 55 euros, citing ongoing pressure on car margins. Meanwhile, Barclays has cut its rating from "Equal Weight" to "Underweight," with a new target price of 48.50 euros, anticipating further guidance during the upcoming capital market day. In XETRA trading, shares fell by 1.48% to 52.56 euros.
Patrick Hummel
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ubs maintains sell rating on volkswagen shares with price target of 75 euros
08:37 23.12.2024
UBS Downgrades Porsche SE to Sell with Target Price Cut to 32 Euros
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UBS Downgrades Porsche SE to Sell with Target Price Cut to 32 Euros
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