Volkswagen Stock: Share Price Falls Amid Profit Challenges

Volkswagen's stock experienced a significant decline on Tuesday's XETRA trading, dropping 2.0% to €107.20. The shares, which opened at €108.90, fell as low as €106.90 during the day with a trading volume of 772,122 shares. This performance reflects ongoing challenges for the automotive giant, which has seen a substantial decrease in quarterly profits. Earnings per share declined to €6.25 compared to €9.31 in the previous year, while revenue showed only marginal improvement at €87.38 billion. Analysts have adjusted their dividend forecasts downward to €6.60 per share for the current year, compared to €9.06 paid previously. The current share price remains approximately 20% below the 52-week high of €128.60 reached on April 5, 2024. Meanwhile, VW has reduced its stake in truck manufacturer TRATON from 89.7% to 87.5%, raising €360 million through a placement priced at €32.75 per share.

Mixed Signals for Investor Outlook

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Volkswagen?

Despite current weaknesses, some financial experts maintain optimism about Volkswagen's prospects. Metzler Bank has upgraded their recommendation from "Hold" to "Buy," increasing their price target from €115 to €125. Analysts cite the company as potentially benefiting from European automotive industry plans and electric vehicle initiatives. The consensus price target stands at approximately €117.70, suggesting potential upside from current levels. This optimism comes despite significant cost-cutting measures across the group, including at subsidiary Porsche, where employee bonuses have been reduced by nearly half to €5,250 gross for 2024, down from €9,690 the previous year.