Volkswagen AG Preferred Stock Surges in Analyst Focus as Fund Appetite Strengthens

Volkswagen AG’s preferred shares trading under ticker 1VOW3 on the Berlin exchange have captured renewed institutional attention. The stock’s one-year price target has been substantially upgraded, signaling increasing conviction among Wall Street’s equity strategists. This shift reflects a broader reassessment of the automotive giant’s strategic position in an increasingly competitive EV market.

Analyst Consensus Shifts Bullish on Volkswagen AG Stock

The updated consensus price target for Volkswagen AG preferred stock now stands at €130.13 per share, representing an 11.91% increase from the prior projection of €116.28 established in mid-January. The current analyst consensus spans a wide range, with targets running from a low of €121.44 to a high of €147.29 per share—suggesting meaningful debate about the company’s near-term trajectory.

Against the latest reported closing price of €101.95, the average target implies 27.64% upside potential, indicating that many analysts see the stock trading at a discount to intrinsic value. This gap between current price and target level reflects the market’s cautious stance versus the research community’s more constructive outlook on Volkswagen AG’s recovery prospects.

Institutional Investors Recalibrate Positions in 1VOW3

The institutional landscape surrounding Volkswagen AG has undergone significant reshuffling recently. A total of 22 funds and institutions currently report material positions in 1VOW3, though this represents a decline from the prior quarter when 26 holders were on file—a reduction of four institutional owners. Despite fewer participants, the average portfolio weight dedicated to Volkswagen AG preferred stock among committed funds has expanded to 0.22%, marking a 35.28% increase in relative emphasis.

Total institutional shareholdings decreased modestly by 0.91% over the trailing three months to approximately 1.11 million shares, suggesting that while fewer institutions hold the stock, those remaining are maintaining or even slightly increasing their allocations.

Five Major Funds Show Mixed Signals on Volkswagen Preferred Stock

The detailed holdings data reveals a nuanced picture of institutional sentiment toward Volkswagen AG. TCIEX - TIAA-CREF International Equity Index Fund Institutional Class remains the largest indexed holder with 346,000 shares representing 0.17% ownership. The fund boosted its absolute position by 2.54% from 337,000 shares, though it trimmed its relative portfolio weight by 5.97% during the quarter, suggesting rebalancing rather than conviction-based buying in Volkswagen AG.

Bridge Builder Large Cap Value Fund took a more decisive stance, raising its Volkswagen AG holding to 183,000 shares from 169,000 shares—an increase of 7.39%. The fund simultaneously expanded its portfolio commitment to 1VOW3 by 6.08%, indicating active selection in favor of the preferred stock over competing opportunities.

Six Circles International Unconstrained Equity Fund moved in the opposite direction, cutting its position significantly from 255,000 to 145,000 shares—a reduction of 75.79%. This substantial pullback was accompanied by a 42.72% decrease in portfolio weighting, the steepest relative cutback among tracked funds and suggesting either tactical profit-taking or a shift in the fund’s thematic allocation.

Stock Account Class R1 similarly reduced its Volkswagen AG exposure from 159,000 to 123,000 shares, representing a 29.03% decline in holdings alongside a 26.22% reduction in portfolio weight. This mirrors concerns held by other cautious investors about the company’s near-term headwinds.

Invesco FTSE RAFI Developed Markets ex-U.S. ETF provided a contrarian signal by increasing its Volkswagen AG stake from 81,000 to 97,000 shares—a 16.99% gain. The ETF also meaningfully increased its portfolio allocation to 1VOW3 by 8.75%, suggesting that value-oriented strategies continue finding Volkswagen AG attractive at current levels.

The divergent behavior across institutional players reflects genuine uncertainty about Volkswagen AG’s direction, with value-focused allocators generally maintaining or adding to positions while other categories trim exposure ahead of potential near-term challenges.