Deutsche Bank reiterated a Buy rating on Volkwagen ( OTCPK:VLKAF ) on Monday, but reeled in its price target to €200 from €230.
Analyst Tim Rokossa pointed to underlying steady deliveries trends, but noted the market dislikes adjustments and the missing strategy details from the earnings report on Friday.
"On a heavy industrial reporting day, VW did not make it particularly easy to digest their results. Four group conference calls and plenty of non-recurring items unfortunately over-shadowed what was actually a pretty decent and consistent delivery, with 8% underlying margin."
Rokussa also does not think revising down the deliveries guidance as the semiconductor shortage impact keeps biting should have not been a negative surprise either.
However, he thinks the market is looking for a clear and strong message about the company's strategy in particular on software and BEVs. Volkwagen's ( OTCPK:VLKAF ) share price is seen being held back in the near term until the auto giant holds a big strategy reveal.
Volkswagen ( OTCPK:VLKAF ) gained 0.33% on Monday and was swapping hands at €169.60 in Europe on Monday, which is about 18% below the Deutsche Bank PT.
Read more about Volkswagen's earnings.
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Volkswagen is tipped by Deutsche Bank to rally next year after strategy update