VW with 14-percent chance
The VW-Vz. Share is currently in a consolidation phase after the spring price drop. With bonus certificates with Cap, investors can still achieve high returns even if the stock price continues to decline.
Due to waning demand for electric Volkswagen models and weak numbers for the first quarter, the VW-Vz. share price dropped from 120 Euro at the end of May 2024 to a low of 104 Euro by the end of June 2024. The latest decline in price was caused by a revised forecast due to weak demand for the upper-class electric Audi Q8 e-tron.
Despite expectations of at least a slight increase in sales for the Volkswagen Group in the second half of the year, analysts confirmed their buy or hold recommendations for the VW-Vz. share in their latest reports with price targets of up to 180 Euro (Deutsche Bank).
The Investment Concept
For risk-tolerant investors who are considering investing in the undervalued VW-Vz. share and want to significantly reduce the risk of direct stock investment, bonus certificates with Cap currently offer attractive yield opportunities and a safety buffer. With these products, investors can generate yields in the double-digit percentage range in the coming months.
Bonus certificates with Cap offer investors an advantage over direct stock purchases in that they allow for high returns even when stock prices are stagnant or declining. However, certificate investors must forgo the unlimited potential gains and potential dividend payments of stock investments.
How it Works
If the VW-Vz. share does not reach the barrier of 75.00 Euro by the certification date of the bonus certificate with Cap, the bonus certificate will be redeemed at the bonus level of 122.50 Euro on September 26, 2025.
Key Data
At DZ Bank, the bonus certificate with Cap on the VW-Vz. share (ISIN: DE000DQ5LUM5) has a bonus level and Cap of 122.50 Euro. The barrier, which is active until the valuation date on September 19, 2025, is set at 75.00 Euro. Investors could purchase the certificate for 107.60 Euro with the VW-Vz. share price of 106.75 Euro.
Opportunities
Since investors can currently purchase the certificate for 107.60 Euro, it offers a potential gross return of 13.85% (or 11.54% annually), provided the stock price does not fall below 75.00 Euro or its barrier by the valuation date.
Risks
If the VW-Vz. share reaches the barrier of 75.00 Euro or lower by the valuation date and the stock price is below the Cap at that time, the certificate will be redeemed at the stock price on the valuation date. If the redemption price is below 107.60 Euro, the certificate investment will result in a loss.
This post does not constitute a recommendation to buy or sell VW-Vz. shares or any investment products based on VW-Vz. shares. No liability is assumed for the accuracy of the data.
- For investors interested in the Volkswagen Group's performance, a guide to investing in Dax-companies, such as Volkswagen, can provide valuable insights into potential returns.
- Bonus certificates with Cap can be a smart option for investors looking to share tips on wealth creation, as they offer a safety buffer and the potential for high returns, even when the Dax-companies like Volkswagen experience a price decline.
- Despite Volkswagen facing challenges with electric model demand and a revised forecast for the Audi Q8 e-tron, experts still recommend buying or holding onto VW-Vz. shares, citing potential for a price increase in the second half of the year.
- If Volkswagen shareholders are seeking alternative investment opportunities, they might consider purchasing bonus certificates with Cap, which can yield double-digit returns, offering a different approach to traditional securities investment in Dax-companies like Volkswagen.
