D The diesel crisis is not over yet, but the Volkswagen Group does not seem to be much connected with analysts. A new study now sees a price potential of almost 70 percent of the automotive share and is primarily targeting a group division.
The renowned car analyst Jürgen Pieper has raised the price target for the VW papers from 215 to 270 euros. The commercial vehicle division could help the share price to new heights, wrote Pieper in his study. Truck & Bus is a company that could be one of the leading companies in the global commercial vehicle market within a few years.
Two of the original companies – MAN and Scania – have been among the most profitable manufacturers of heavy trucks for decades. Combined with the Latin American activities of VW Caminhoes e Onibus and Navistar, they are expected to achieve higher growth and profitability in the medium term. Savings of several hundred million euros over the next five years should give additional impetus.
The Wolfsburg have a possible IPO of the division with heavy commercial vehicles on the slip and want to redeem up to 7 billion euros. The majority of the structure of MAN, Scania and the Brazilian commercial vehicle company wants to keep VW in the case of an IPO.
Share attractively valued
Other analysts are not so much in focus on the topic. Morgan Stanley, for example, left the rating for Volkswagen on “Equal-weight” with a target price of € 160. Negative currency effects, rising commodity prices, slower sales growth and higher development costs should affect the profit performance of European automakers this year, said analyst Harald Hendrikse recently in an industry study.
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The British investment bank Barclays, however, advises overweighting with a price target of 210 euros and also JP Morgan is not far from this assessment with 213 euros.
Currently listed the VW share at 159.18 euros. With an estimated price-earnings ratio (P / E) for the current year of less than 6, the stock is rated very attractively. In addition, a dividend yield of 3.4 percent, which could reach almost 4 percent in 2019. If the assessment of the car analyst Jürgen Pieper prove to be correct, that would be in the sense of long-standing VW shareholders.
Over the past three years, these have lost just under 24 percent with the preference shares of the automotive group. Those who joined VW only in 2017, however, performed better and achieved a profit of more than 17 percent.