Volkswagen Stock: UBS Cuts Target Amid Labor Tensions

Volkswagen's stock continues to face significant pressure as UBS reduces its price target from 84 to 75 euros, highlighting ongoing challenges for the automotive giant. Currently trading at approximately 80 euros, the stock sits markedly below its 52-week high of 128.60 euros, reflecting broader concerns about the company's operational performance. Analysts anticipate prolonged pressure on both operating profits and cash flow extending beyond 2025, with structural cost issues and necessary corporate restructuring expected to require substantial time to address. The automotive sector's sentiment has reached its lowest point since the COVID-19 pandemic, with industry indicators showing a significant decline.

Labor Disputes Intensify Challenges

The company's situation is further complicated by escalating labor tensions, as nearly 100,000 employees participate in warning strikes across company facilities, significantly disrupting production operations. The dispute centers on proposed wage reductions of 10 percent and potential facility closures, with a crucial negotiation round scheduled for December 9th. Despite current market weakness, some analysts maintain cautious optimism, setting an average price target of 110.20 euros, suggesting potential upside of 37 percent, though this outlook is tempered by ongoing industry transformation challenges and intense global competition.