Volkswagen: Why is Jefferies so ambitious?

Volkswagen: Why is Jefferies so ambitious?


Recently, the German heavyweights in the automotive industry were again able to score with positive news. Volkswagen Group and Mercedes-Benz want to work more closely with Canada in the future. And there is also news about Porsche’s IPO. However, Jefferies analyst Philippe Houchois remains optimistic about VW shares.

During the visit of Federal Chancellor Olaf Scholz (SPD) to Canada, the Volkswagen Group and Mercedes-Benz signed declarations of intent for electric mobility in Toronto. And as for the IPO of VW subsidiary Porsche, there are signs of high valuations and very high demand for paper.

Bloomberg news agency, citing people familiar with the matter, reported that Porsche AG will be valued between 60 and 85 billion euros by the parties. The IPO should be announced in the first week of September.

However, Jefferies analyst Philippe Houchois remains cautious about the valuation of VW shares.

After a meeting with investors, he maintains his price target of 115 euros. In view of the upcoming IPO of the luxury brand VW Porsche AG, Houchois wrote in a study that they are divided between worries and hopes about the liquidity of the stock. Optimists are confident that liquidity should be attractive even if major shareholders have a large stake in Porsche AG.

According to the agreement between Volkswagen and the family owners, the share capital of Porsche AG is to be divided equally between preferred shares and ordinary shares. Up to 25 percent of the non-voting preference will be invested in the capital market, i.e. 12.5 percent of the total capital.

Basically, the latest news flow from Volkswagen is positive. However, the Porsche IPO is and remains a complex structure. With the information currently available, it is difficult to estimate who will ultimately benefit the most from this.

Volkswagen vz
(WKN: 766403)

Technically, VW stock looks promising. A significant donation of 120 euros has been made. As a result, the paper broke the 50-day line, which recently also proved itself as a support. The next step is 158.36 euros. This is where the important 200-day line develops.