05:41 AM EDT, 07/29/2026 (MT Newswires) -- Berenberg revised its price target and forecasts for Volkswagen (VOW.F) amid a model update following the German automaker's second-quarter results and reduced 2026 sales guidance, with analysts taking note of continued challenges in China. The research firm cut the price target to 100 euros from 113 euros, while maintaining the stock's buy rating, according to a note published Tuesday. "While uncertainty remains elevated across the automotive sector - particularly due to the challenges posed by Chinese OEMs as well as reignited inflationary pressures - VW is fully embracing fixed-cost reductions aimed at addressing production inefficiencies. Aside from the much improved recent track record for cash conversion, these efforts are visibly supporting margins at the company's 'core' brands with further radical initiatives yet to come," analysts wrote. "China remains challenging, but we think downside risk relative to German peers has reduced, as China expectations are already somewhat derisked for 2026-27, and the launch of locally designed products is accelerating in late 2026 and into 2027." Against this backdrop, sales and EPS estimates for 2026 were lowered by 1.5% and 15%, respectively. For 2027 and 2028, the forecasts for both metrics were also reduced. Meanwhile, Berenberg initiated its coverage of the company's American depositary receipt with a price target of $11.50.

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