Volkswagen’s Strategic Initiatives and Market Conditions Justify Buy Rating

DBS analyst Elizabelle Pang maintained a Buy rating on Volkswagen (0P6N – Research Report) today and set a price target of €135.00.

Elizabelle Pang’s rating is based on a combination of strategic initiatives and favorable market conditions. Volkswagen is launching 30 new models in 2025, implementing cost reduction strategies in Germany and China, and leveraging its extensive product portfolio to mitigate margin pressures. These efforts are expected to enhance the company’s competitive position and profitability.
Additionally, recent regulatory developments in the EU provide Volkswagen with a more flexible timeline to comply with CO2 regulations, which is advantageous given its current BEV mix. The company’s undemanding valuation, coupled with a strong dividend yield, presents an attractive risk-reward profile. Despite challenges in the Chinese market, Volkswagen’s strategic product launches and improving sales figures indicate potential for growth, justifying the Buy rating.