Kepler Equities reportedly raised its price target for Volkswagen AG to €42 from €38 on Friday, citing prospects that cost cuts will boost earnings at Europe’s biggest car maker.
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“While we slightly adjust our 2005 estimates downwards for currency reasons and lower China profits, we have increasing confidence in a sharp rebound to follow as a result of increasing cost-cutting efforts during the year,” it said in a note to clients cited by the Reuters news agency.
It reportedly said it thought VW could chop up to €4 billion ($US5.21 billion) from costs even after completing its current ForMotion efficiency drive.
