Volkswagen AG : The comeback of an upward trend can be anticipated

01/06/2022 | 02:59am EDT

Jordan Dufee

long trade Stop-loss triggered

Entry price : 187.3€ | Target : 235€ | Stop-loss : 160€ | Potential : 25.47%

Volkswagen AG reflects attractive technical aspects that could allow investors to expect a trend reversal over the medium term. Investors have an opportunity to buy the stock and target the € 235.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• The company presents an interesting fundamental situation from a short-term investment perspective.
• The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.

Strengths

• The company is in a robust financial situation considering its net cash and margin position.
• The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
• The company shows low valuation levels, with an enterprise value at 0.26 times its sales.
• The company appears to be poorly valued given its net asset value.
• The company has a low valuation given the cash flows generated by its activity.
• This company will be of major interest to investors in search of a high dividend stock.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
• The group usually releases upbeat results with huge surprise rates.

Weaknesses

• Over the past four months, analysts' average price target has been revised downwards significantly.
• The overall consensus opinion of analysts has deteriorated sharply over the past four months.
• The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

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