Halister News

(Bloomberg) -- Volkswagen full-year adj. EPS average estimate has risen 3.4% in the last four weeks, the most among the 16 carmakers and suppliers on the SXAP index, according to Bloomberg data.

• VW’s 2016 avg Ebit estimate has risen 12% in four weeks vs Daimler’s avg estimate down 2.1% and BMW’s unchanged
• Daimler’s 2016 adj EPS consensus has fallen the most in the SXAP, down 2.2% in four weeks; co. lowered its truck unit profit forecast in May
• The price target for VW, which reported higher-than-expected 1Q Ebit last week, has risen 5.3% in four weeks, also best on the SXAP; the average PT EU145 giving the preferred shares 11% upside

ANALYST COMMENT

• HSBC (hold) says in note yesterday that VW appears to be recovering from diesel emissions scandal faster than expected; even so broker doesn’t see why the company should re-rate more than its German peers
• Deutsche Bank (hold) says yesterday that VW shares have had good run and earnings expectations were cut “severely” in wake of diesel scandal; says staying on sidelines, sees additional diesel legal risks
• Citi (buy) said last week that 1Q results showed signs that co is through the worst of the diesel scandal, while Kepler Cheuvreux said the results confirmed its buy rating

NOTE:

• VW has the SXAP’s second-worst average analyst rating (11 buys/13 holds/10 sells) after Nokian Renkaat (6 buys/11 holds/6 sells)
• VW shares are down 2% YTD vs SXAP down 15%; the shares are 19% below the level of September, when U.S. authorities announced the diesel emissions violations
• June 3: VW Overcomes European Recall Hurdle With Approval for Passat Fix