Volkswagen Stock: Major Valuation Challenges Amid Market Resilience

Volkswagen's major stakeholder, Porsche Automobil Holding SE, faces significant accounting challenges regarding its investments in both Volkswagen AG and Porsche AG. The holding company anticipates extraordinary write-downs ranging from 7 to 20 billion euros for its Volkswagen stake, with an additional correction of 1 to 2 billion euros for its Porsche holdings. These adjustments stem from challenging market conditions, weakening demand, and escalating geopolitical tensions. Despite these headwinds, Volkswagen's financial performance remains under scrutiny, with earnings per share declining significantly from 7.76 euros to 2.42 euros, while revenue slightly decreased to 78.48 billion euros compared to the previous year.

Market Outlook Remains Cautiously Optimistic

Despite these challenges, Volkswagen's stock demonstrates remarkable resilience in XETRA trading, posting a gain of 2.3% to reach 88.80 euros. The stock maintains a position well above its 52-week low of 78.86 euros from November 2024, though still considerably below its April peak of 128.60 euros. Analysts maintain a positive outlook, setting an average price target of 110.20 euros, suggesting potential upside of over 24% from current levels. For the full year 2024, experts project earnings of 22.86 euros per share, with an anticipated dividend of 6.41 euros.