Volkswagen's Maintained Margin Guidance Offers Some Reassurance -- Market Talk

0651 GMT - Volkswagen reiterated its 4%-5.5% group operating profit guidance corridor for 2026, which is positive considering the current gloom surrounding the sector, even if revenue guidance was reduced, Bernstein analysts write. The 2Q operating margin of 4.2% is below the 4.7% forecast in a company-compiled consensus but in line with Bernstein's, while cash flow was ahead of consensus but again in line with Bernstein. The bank says Volkswagen management is trying to walk the tightrope of reassuring investors while at the same time telling its workforce that the house is on fire and that painful cuts to capacity, requiring significant plant closures, are unavoidable. "That is an almost impossible needle to thread and explains our market perform rating." Bernstein has a 100 euros price target on the stock. VW shares closed at 72 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 02:52 ET (06:52 GMT)