Volkswagen’s stock faces significant headwinds as shares trade at €86.64 on the XETRA exchange, marking a dramatic 48% decline from its 52-week high of €128.60 reached in April. The automotive giant’s financial outlook appears increasingly challenging, with Analysts projecting a substantial reduction in dividends from €9.06 to €6.41 per share for the current year. The third quarter results further underscore these difficulties, with earnings per share dropping significantly to €2.42 from €7.76 in the previous year’s comparable period. Despite these setbacks, market experts maintain a cautiously optimistic stance, setting an average price target of €110.20.
Labor Negotiations Add to Market Pressure
The company’s market challenges are compounded by ongoing intensive wage negotiations in Hannover. Management’s proposal for a 10% wage reduction, aimed at addressing mounting economic pressures, has sparked intense discussions with labor representatives advocating for job security for approximately 130,000 employees. These negotiations, which recently included a marathon 13-hour session, are expected to conclude before the holiday season, potentially influencing the company’s cost structure and market performance.
Ad
Volkswagen Stock: New Analysis – 19 December
Fresh Volkswagen information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated Volkswagen analysis…
Volkswagen’s stock faces significant headwinds as shares trade at €86.64 on the XETRA exchange, marking a dramatic 48% decline from its 52-week high of €128.60 reached in April. The automotive giant’s financial outlook appears increasingly challenging, with Analysts projecting a substantial reduction in dividends from €9.06 to €6.41 per share for the current year. The third quarter results further underscore these difficulties, with earnings per share dropping significantly to €2.42 from €7.76 in the previous year’s comparable period. Despite these setbacks, market experts maintain a cautiously optimistic stance, setting an average price target of €110.20.
Labor Negotiations Add to Market Pressure
The company’s market challenges are compounded by ongoing intensive wage negotiations in Hannover. Management’s proposal for a 10% wage reduction, aimed at addressing mounting economic pressures, has sparked intense discussions with labor representatives advocating for job security for approximately 130,000 employees. These negotiations, which recently included a marathon 13-hour session, are expected to conclude before the holiday season, potentially influencing the company’s cost structure and market performance.
Ad
Fresh Volkswagen information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.