Berenberg Starts Volkswagen AG (VLKAY) at Sell
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Berenberg initiates coverage on Volkswagen AG (OTC: VLKAY) with a Sell rating.
Analyst Alexander Haissl commented, "We re-initiate coverage of Volkswagen (VW) with a Sell rating and a price target of €98 – restructuring not meaningful: In our view, the Future Pact (“Zukunftspakt”) announced on 18 October is more of realignment rather than a meaningful restructuring, which the market had hoped for. The agreements struck by VW with the unions and German government underpinned the fact that meaningful changes and restructuring are difficult to implement. Targeted savings are not enough to improve VW’s cost-competitiveness (personnel expenses are 400bp above the sector average) in a more meaningful way and may at best offset its excessive labour cost inflation (200bp above the sector average). VW’s weak cash flow generation (excluding JVs) is a concern, particularly given increasing cycle risks and committed investments in new technologies. Thus, the net industrial cash balance of more than €30bn (end of September 2016) may not be as safe as it appears."
Shares of Volkswagen AG closed at $27.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Starts Shopify (SHOP) at Perform
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!