Shares of the DAX 40-listed Volkswagen AG (DE:VOW) surged by 6.85% on Tuesday following a call with analysts, boosting speculation that the company could reveal fourth-quarter sales exceeding current market expectations. Also, management was optimistic about its outlook for 2024. On Tuesday, Volkswagen shares outperformed other European auto stocks and the DAX index.
The company is scheduled to publish its fourth-quarter numbers and its annual results for 2023 on March 13, 2024.
Volkswagen (VW) is a luxury car manufacturer, owning brands like Volkswagen, Skoda, Audi, Bentley, Ducati, Lamborghini, and others in its portfolio.
Bullish Sentiments
Analyst Daniel Schwarz from Stifel Nicolaus stated after the call the overall message was “confident” regarding the Q4 2023 numbers and this year’s outlook. Schwarz added that the company expects higher Q4 revenues, driven by unit sales, and could surpass the consensus estimate of €80 billion.
For 2024, the company is likely to grow its volumes by 3%, as estimated by S&P. However, Schwarz thinks that the consensus estimate appears to be too conservative.
In December, Schwarz confirmed his Buy rating on the stock, predicting a growth rate of 19%.
Recently, Volkswagen reported a 12% rise in deliveries, reaching 9.24 million vehicles in 2023. The figures approached pre-pandemic levels as the company successfully navigated supply chain challenges, including chip shortages and the Ukraine conflict’s repercussions. Additionally, the company’s all-electric vehicle (BEV) sales increased by 34.7% to 771,100 compared to 2022.
Moving forward, the company assured its investors that it is well-placed for 2024 with a range of appealing new products.
Is Volkswagen a Good Stock to Buy Now?
According to TipRanks’ consensus, VOW stock has received a Moderate Buy rating based on recommendations from nine analysts. This includes six Buy and three Hold recommendations. The Volkswagen share price forecast is €138.63, which is 11% higher than the current price level.
