Stock in focus: Why is the Volkswagen stock suddenly booming?
A seven percent increase in just one month makes the car manufacturer the most successful Dax title. However, the stock has been in a good starting position for some time now.
The German stock market index Dax has lost around 1% over the past month, partly due to rising oil prices and interest rates. In contrast, Volkswagen (VW) has seen a 7% increase, making it the top performer in the Dax. This is attributed to the company's efforts to increase efficiency, including plans to cut 50,000 jobs worldwide and 50,000 in Germany, as it struggles with overcapacity, high costs, and a slow transition to electric vehicles.
VW's stock is now considered undervalued, trading at 4.1 times expected earnings, and 14 out of 26 analysts recommend buying the stock, with a 12-month target price of €103, 25% above the current level.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
