1037 GMT - Volkswagen is fully embracing fixed-cost reductions to address production inefficiencies, as uncertainty remains elevated across the automotive sector, Berenberg analysts Romain Gourvil and Tommy Whitfield write. Aside from the much improved recent track record for cash conversion, these efforts are visibly supporting margins at the company's "core" brands with further initiatives yet to come, they add. "China remains challenging, but we think downside risk relative to German peers has reduced, as China expectations are already somewhat derisked for 2026-27." The launch of locally designed products is accelerating in late 2026 and into 2027, which should also help, the bank says. Berenberg lowers its price target for the stock to 100 euros from 113 euros and maintains its buy rating. Shares rise 2.6% to 74.30 euros.
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