Volkswagen downgraded to Hold from Buy at Stifel

Stifel downgraded Volkswagen to Hold from Buy with a price target of EUR 149, down from EUR 295. The firm’s previous Buy thesis was based on the "three pillars" that scale provides an advantage in the EV transition, the Porsche IPO unlocks value and the company’s strong cash flows, but says that "all three seem less valid now." In explaining its "drastic cut to our target price," the firm said it has moved from a sum-of-the-parts valuation to one on the basis of a 5-times target PE ratio, which it notes is a slight premium to the 4.8-times PE ratio of peers.