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Volkswagen seen as undervalued with strong margin recovery potential and 20%+ upside, says analyst.

Analyst Insights
07 Sep 2026
Seeking Alpha
View Source
Bullish
Volkswagen seen as undervalued with strong margin recovery potential and 20%+ upside, says analyst.

Volkswagen is currently considered deeply undervalued due to its ongoing restructuring efforts, including model cuts, labor reductions, and cost discipline, which have improved cash flow and operations despite sector challenges. The analyst expects normalized earnings per share of €22.5 and maintains a price target of €160 per share, suggesting over 20% annual upside without needing aggressive valuation increases. Risks include timing of margin recovery and exposure to China, but Volkswagen's scale, credit quality, and reliable dividend make it a compelling investment opportunity. The analyst has a long position in Volkswagen and emphasizes the importance of investor due diligence.

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