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Upbeat brokers lift Volkswagen's market value above 100 billion euros

Upbeat brokers lift Volkswagen's market value above 100 billion euros

FILE PHOTO: An employee fixes a VW sign at a production line of the electric Volkswagen model ID.3 in Zwickau, Germany, February 25, 2020. REUTERS/Matthias Rietschel/File Photo

FRANKFURT: Shares in Volkswagen, the world's second-largest carmaker, rose to their highest in more than three years on Wednesday, boosted by upbeat comments from analysts that included UBS raising its price target by 50per cent.

Preferred shares, which are listed in Germany's benchmark DAX index, advanced as much as 6.2per cent to their highest since January 2018, taking Volkswagen's market value to 100.4 billion euros (US$121 billion).

Raising its target price to 300 euros per share from 200 euros, UBS said findings from dismantling Volkswagen's ID.3 fully-electric model made it more optimistic on the component landscape for battery electric vehicles (BEV).

"The market has been waiting for our #BEV-ramp-up and wanted to see some proof points, so here we are," Volkswagen Chief Executive Herbert Diess said on Twitter.

Ordinary shares rose as much as 5.6per cent to their highest since July 2015, two months before the diesel scandal broke.

(US$1 = 0.8302 euros)

(Reporting by Christoph Steitz. Editing by Mark Potter)

Source: Reuters

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