GM - Volkswagen AG Preferred: The Variety Of Brands Is Not Appreciated By The Market

2024-03-14 11:31:26 ET

Summary

• Volkswagen's preferred shares are undervalued due to a high brand value and Volkswagen's share in Porsche.
• Volkswagen's diverse brand portfolio and fleet electrification help offset sales declines and compete with new competitors.
• Compared to its peers, Volkswagen's valuation is low and its preferred stock offers an attractive risk-return opportunity.
• A growing global economy, increasing car sales and higher revenues are good conditions for another year of satisfying financial performance in 2024.
• The preferred shares which are part of the German DAX are a strong buy and the management could unlock shareholder value by buybacks.

1. Investment thesis

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