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Analyst ratings are quantitative and qualitative analysis of a stock by Wall Street stock rating analysts. Stock ratings consist of expected future growth, current stock valuation and macroeconomic trends.

Tim Rokossa's

<ul>
	<li>
		Volkswagen AG (ADR) (OTC: <a class="ticker" href="/stock/vlkay#OTC">VLKAY</a>) shares have seen a 38.32 percent decline year-to-date.</li>
	<li>
		Tim Rokossa of Deutsche Bank has downgraded the company to Hold, with a price target of &euro;130.</li>
	<li>
		Although the stock might seem attractive following the company losing &euro;30 billion in market value, Rokossa believes that the uncertainty related to the emission scandal would persist for some time.</li>
</ul>

	According to the Deutsche Bank report, &ldquo;1) the legal fines will be painful, impossible to quantify and potentially remain a topic for years &amp; that 2) the impact on the operational business poses even higher risks for future cash flows.&rdquo;

	On Friday, September 18, Volkswagen had been slapped with a fine of $18 million when the U.S. regulator found that the company had &ldquo;misled regulators by equipping their engines with &lsquo;hidden&rsquo; software&rdquo; for 500,000 cars in the country

	Related Link:<a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/09/5857041/the-fall-of-volkswagen-how-analysts-are-reacting"> The Fall Of Volkswagen: How Analysts Are Reacting</a>

	However, the company has now stated that 11 million cars were affected due to this issue, globally. &ldquo;History has shown that with recalls the first &lsquo;confessions&rsquo; are rarely the end of it,&rdquo; Rokossa stated, while expecting the company to bear legal fees/residual impairment of about &euro;5 billion.

	Rokossa also believes that &ldquo;the legal fees will be very painful but likely manageable as the effect is usually spread over several years,&rdquo; and expects another &euro;5 billion in non-core disposals.

	However, what Rokossa believes is more a cause for concern in the mid-term is the impact on operations, with the impact on volumes, residual values, pricing and costs being difficult to estimate.

	The EPS estimates for 2015-2017 have been significantly lowered to account for the legal fine, recall costs, lower growth and pricing pressure due to &ldquo;brand damage.&rdquo; &ldquo;Any &euro;1bn additional fine would take away &euro;2.02 per share,&rdquo; Rokossa added.

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VLKAY

It&#39;s Not Over For Volkswagen; Deutsche Bank Downgrades &#39;Polluted&#39; Stock

<li>Shares of Volkswagen AG (ADR) (OTC: <a class="ticker" href="/stock/vlkay#OTC">VLKAY</a>) plunged to new 52-week lows of $24.40 on Tuesday.</li>
<li>Investors and traders continue reacting to the negative headlines that the company manipulated its emissions standards data.</li>
<li>Volkswagen stated it will fully cooperate with regulators, as emissions under real driving conditions were said to have been 40 times higher than the company reported.</li>

Shares of Volkswagen (European listed and its OTC equivalent) plunged to new 52-week lows on Tuesday following news reports that the company sold diesel cars equipped with software designed to evade federal nitrogen oxide emissions standards in violation of the Clean Air Act.
The company also admitted that manipulation did indeed take place and it will cooperate with the appropriate regulators moving forward.

Here is a roundup of what Wall Street's top analysts are saying.

<h3>Deutsche Bank: Beyond A ‘Usual' Recall</h3>

Tim Rokossa of Deutsche Bank commented in a note that the headlines imply "intentional cheating" by Volkswagen and the consequences could be "far bigger" than any other case involving an auto manufacturer.

Rokossa noted that at the very least, the announcement makes Volkswagen's U.S. turnaround "significantly harder" and will "not go down well" for the "long-awaited" breakthrough of diesel engines in the United States that the company was "pushing" for quite some time.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/15/09/5853723/legal-issues-are-giving-volkswagen-investors-an-enormous-headache">Legal Issues Are Giving Volkswagen Investors An Enormous Headache</a></bzrelatedlink>
The analyst also stated that the announcement could have consequences in Europe, where the market share of diesel cars are "much higher." 

On the other hand, Rokossa pointed out that companies who fully cooperated with regulatory agencies have received lower fines. So far, there have been no direct injuries reported.

<h3>Morgan Stanley: Large Potential Penalties</h3>

Harald Hendrikse of Morgan Stanley commented in a note that there are three key implications from the issue: 1) Volkswagen faces "large" potential penalties of up to $37,500 per vehicle that is not in compliance, in addition to a worst-case $18 billion penalty risk; 2) Volkswagen will have to bring the cars involved into compliance, which may involve "significant" costs; 3) Volkswagen (and to some degree Audi) may see its brand reputation "tarnished."

Hendrikse also noted that even though the company has "plenty" of net cash, its operating performance is expected to suffer for some time.

<h3>Societe Generale: Concerns Beyond Financial Damage</h3>

Stephen Reitman of Societe Generale commented in a note that Volkswagen's potential fine isn't the largest issue facing the company.

According to Reitman, his biggest concern is the reputation risk and potential criminal charges. The company used its clean diesel claims as a "strategic pillar" to differentiate itself, which has now been "deeply compromised."

Reitman added that a potential investigation and uncovering of the responsible parties could potentially involve management and the company's board of directors, leading to "significant uncertainty" beyond the already "sharp" decline in the stock.

<h3>Bank Of America: $37.5K Fine Per Car ‘Seems Very High'</h3>

Douglas Karson of Bank of America commented in a note that the reported $37,500 fine per vehicle found to not be in compliance seems "very high" following the recall and penalties surrounding Navistar, General Motors and Toyota, all of which were in the several billion dollar range.

Karson further speculated that Volkswagen could settle its fine for "a few billion" dollars, although it is very early. The figure does not include potential criminal litigation from the U.S. Department of Justice along with potential civil suits. In addition, the company may also be subject to investigations into its European- and Asian-sold diesel cars to determine if they are also in violation of the respective emission standards.

<h3>Credit Suisse: Dividend At Risk</h3>

Alexander Haissl of Credit Suisse commented in a note that Volkswagen's financial implications could be "material." 

Haissl noted the company has already taken a €6.5 billion provision to cover legal costs, but this figure is "unlikely" to be the final cost given potential charges from regulatory penalties, civil litigation and market share losses.
As such, this will "likely put pressure" on Volkswagen's balance sheet and dividend payments.
Image Credit: <a href="https://pixabay.com/en/vw-hall-volkswagen-braunschweig-941141/">Public Domain</a>

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The Fall Of Volkswagen: How Analysts Are Reacting

In a report issued Thursday, Deutsche Bank analysts Rod Lache and and Tim Rokossa reassumed coverage of Fiat Chrysler Automobiles NV (NYSE: <a class="ticker" href="/stock/fcau#NYSE">FCAU</a>) with a Hold rating (based on valuation) and 12-month target of &euro;12.50.

	The analysts note that, since the combination of Fiat and Chrysler, consummated in 2009, the company&rsquo;s performance has been &ldquo;impressive.&rdquo; In fact, Chrysler is close to achieving its 5-year targets.

	In spite of this growth and the company&rsquo;s exposure to auspicious conditions in North America (from where it derives 60 percent of sales and 70 percent of earnings), the experts add, Fiat Chrysler continues to lag its competitors in terms of profitability, free cash flow and returns. Furthermore, Lache and Rokossa believe that &ldquo;several of the factors that supported FCA&rsquo;s strong performance up until now are likely to moderate.&rdquo;

	Having said this, the analysts also expect management to continue to strive for value creation. Looking to enhance the company&rsquo;s return/valuation profile, FCA&rsquo;s executives &ldquo;are actively targeting aggressive and unconventional opportunities to generate value&rdquo; including the sale of highly valued assets like Ferrari, a push for &ldquo;aggressive growth for underleveraged brands,&rdquo; and the identification of upside/synergies opportunities from M&amp;A.

	This approach, the analysts say, place FCA at a unique position in the industry. &ldquo;While Automakers face diminishing cyclical tailwinds, FCA may achieve strong non-cyclical growth,&rdquo; they explain. However, it should be noted that most of these initiatives will likely materialize several years from now.

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