Volkswagen Earnings: A Slow Start to a Promising Year; Valuation Is Flat

No-moat Volkswagen reported first-quarter earnings that reflected a relatively slow start to the year and tough comparisons to a rebounding first quarter in 2023. Overall unit sales came in 2% lower than last year, at 2.1 million vehicles, though with some 30 new and refreshed models to be launched this year, we don't see any reason yet to alter our full-year forecast. We have raised our fair value estimate for the Europe-listed shares to EUR 355 from EUR 351 to reflect the time value of money, and our fair value estimate for the US-listed depository receipts remains $38 per share as currency effects offset the underlying increase.