Volkswagen Restructuring Costs Make Earnings Tough to Forecast

Dow Jones10-15

1244 GMT - Volkswagen's reported EBIT remains difficult to forecast due to the timing of exceptional restructuring charges, Citi analysts write. EBIT volatility will also likely remain high, in the bank's view. Citi lowers its third-quarter exceptional cost forecast to 8 billion euros from over 9 billion euros, but keeps its 2 billion euro expectation for the fourth quarter and 6 billion euros in full-year 2027. Given the minimal change in its underlying earnings and free cash flow forecasts, Citi keeps its 100 euro target price unchanged. While the German automaker's share price continues to reflect a worst-case outcome, with no credit given for any disposals or restructuring savings, Citi believes the company's management is doing the right things. Citi rates Volkswagen stock at buy. Shares fall 2% to 66.40 euros.

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