Volkswagen AG News & Technical Analysis
Volkswagen shares up slightly on Porsche’s 70–75-billion-euro valuation
Volkswagen shares rose slightly on Monday after the carmaker said it was targeting a valuation of up to 75 billion euros ($74.84 billion) for sportscar brand Porsche, in potentially Europe’s third biggest IPO ever.
Porsche aims to win over investors with its stable brand and high operating margins even as the stocks of other luxury carmakers like Ferrari (NYSE: RACE) and Aston Martin have suffered this year amid the tumult in European stock markets.
The valuation announced on Sunday of 70 billion-75 billion euros is slightly below some investors’ estimates of up to 85 billion euros, but still far outstrips the valuation of other German carmakers like BMW’s 49 billion euros or Mercedes-Benz’s 61 billion.
It also comes close to Volkswagen (ETR: VOWG_p)’s own market capitalization of 88 billion euros. The carmaker saw its shares rise 3% in premarket trade. By 0914 GMT they were only slightly higher at 145.6 euros, from 145.46 at Friday’s close, but bucked a drop in European shares.
While the IPO could still be pulled before trading starts on Sept. 29, Porsche AG’s Chief Financial Officer Lutz Meschke said in early September this would only happen in the event of new “severe geopolitical problems”.
Volkswagen, which analysts have said could see its own valuation bumped up by the listing through showcasing the worth of just one of its premium brands, saw its shares rise 3% in premarket trade but by 0838 GMT they were up just 0.4%, from Friday’s close.
VOLKSWAGEN AG Technical Analysis: Daily Chart
In the weekly charts, VOLKSWAGEN AG was trading in an up channel. VOLKSWAGEN AG is currently trading above all SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 192.95 & the resistance level is at 198.70.
VOLKSWAGEN AG will trade in up channel until there is a trend reversal.
How to Trade VOLKSWAGEN AG this Week:
VOLKSWAGEN AG will follow the uptrend until their trend reversal. So, remain bullish on VOLKSWAGEN AG.
