Kepler Capital Markets Downgrades Volkswagen (OTCMKTS:VWAGY) to Hold

Volkswagen (OTCMKTS:VWAGY) was downgraded by research analysts at Kepler Capital Markets from a “buy” rating to a “hold” rating in a research note issued on Monday, MarketBeat.com reports.

Other research analysts also recently issued research reports about the stock. Zacks Research downgraded shares of Volkswagen from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Volkswagen in a research note on Monday, July 27th. Finally, Citigroup reissued a “buy” rating on shares of Volkswagen in a report on Tuesday, September 8th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy”.

Volkswagen Stock Performance

OTCMKTS VWAGY opened at $8.58 on Monday. Volkswagen has a one year low of $8.07 and a one year high of $12.83. The stock has a 50-day moving average of $8.83 and a 200 day moving average of $9.65. The company has a market capitalization of $43.01 billion, a price-to-earnings ratio of 7.03, a PEG ratio of 0.37 and a beta of 1.07.

Volkswagen (OTCMKTS:VWAGY) last posted its earnings results on Friday, July 24th. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.27). The company had revenue of $93.81 billion for the quarter, compared to the consensus estimate of $92.92 billion. Volkswagen had a net margin of 1.68% and a return on equity of 2.70%. On average, equities analysts predict that Volkswagen will post 1.79 earnings per share for the current fiscal year.

Volkswagen News Summary

Here are the key news stories impacting Volkswagen this week:

• Neutral Sentiment: Volkswagen’s works council called for urgent action on investment, tariffs, electricity costs, and partial retirement programs. The demands highlight growing pressure from employees and policymakers to protect German auto-industry jobs, but could also increase restructuring costs. VW works council calls for action from management and policymakers
• Negative Sentiment: Volkswagen was removed from the Euro Stoxx 50 and replaced by Nokia. The loss of blue-chip status may reduce institutional demand and signals the company’s substantial share-price underperformance. Volkswagen woes deepen as blue-chip index exit follows latest profit warning
• Negative Sentiment: Volkswagen issued a profit warning, cutting its annual operating-return-on-sales forecast and recording a €6 billion goodwill impairment tied to Porsche. The charge and weaker outlook were cited as the main reasons Volkswagen and Porsche shares extended their declines. Volkswagen and Porsche shares extend losses following profit warning
• Negative Sentiment: Porsche, previously a major profit driver and a key asset for Volkswagen, is now weighing on the parent company because of weaker performance and a deteriorating outlook. The setback complicates CEO Oliver Blume’s restructuring strategy. Porsche’s decline from crown jewel to millstone for parent Volkswagen
• Negative Sentiment: Kepler Cheuvreux downgraded Volkswagen from “buy” to “hold,” reducing a source of positive analyst support amid the profit warning and Porsche-related impairment. Kepler Cheuvreux downgrades Volkswagen to Hold
• Negative Sentiment: Volkswagen is recalling more than 208,000 SUVs because a faulty steering-rack bolt could break and cause loss of steering control, creating additional safety, repair, and reputational costs. Volkswagen recalls 208,000 SUVs over steering bolts

About Volkswagen

Volkswagen AG is a German automotive company headquartered in Wolfsburg, Germany. Through its Volkswagen Group operations, the company develops, manufactures and sells passenger cars, commercial vehicles, trucks, buses, motorcycles and related mobility products. Its portfolio includes vehicles powered by internal combustion engines, hybrids and batteries, along with digital services and charging solutions.

The group’s major automotive brands include Volkswagen Passenger Cars, Audi, Škoda, SEAT, CUPRA, Porsche, Bentley, Lamborghini, Ducati and Volkswagen Commercial Vehicles.