Volkswagen Has a Plan and Its Future is Far More Secure

Dow Jones09-08

0648 GMT - Volkswagen's future is far more secure following the unanimous agreement on management's restructuring plans, Citi analysts write. Although not all the plans have been detailed, the agreement highlights a number of important ideas, the bank says. The German automaker has formulated a cost plan, taking account of future downside earnings risks, and has the management and liquidity to achieve this existential restructuring. Eventual execution and EU trading conditions will determine whether there is any upside to group EBIT, the bank adds. "Whilst the operating conditions remain very tough, at least VW has a plan." Citi rates Volkswagen at buy and lifts its target price to 100 euros from 94 euros. Shares closed at 81.25 euros.

 

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