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Tuesday, Deutsche Bank (ETR:DBKGn) initiated coverage on Volvo Car AB (ST:VOLCARb) (VOLCARB:SS) with a Hold rating and a price target of SEK22.00. The firm’s analysts pointed to the company’s ongoing transition to an electrified fleet by the end of the decade, acknowledging Volvo (OTC:VLVLY) Cars’ historic commitment to safety and sustainability.
Volvo Cars, renowned for its safety innovations such as inventing the three-point safety belt in the 1950s, is now focusing on sustainability and electrification. The company aims to launch cost-efficient battery electric vehicles (BEVs) starting in 2026, striving to achieve margin parity with internal combustion engine (ICE) vehicles by the decade’s end.
The analysts forecast a challenging year for Volvo Cars in 2025, expecting limited demand and pricing pressure. They anticipate that new models will begin making a significant impact in the second half of the year. According to Deutsche Bank, earnings may compress in 2025 due to these factors, but the outlook could improve in 2026 as model refreshes take effect and investment needs decrease.
The financial institution anticipates that Volvo Cars’ success in the upcoming years will depend on the acceleration of electric vehicle demand. The analysts’ projection aligns with the company’s own guidance, suggesting a pivotal period ahead for Volvo as it adjusts to the evolving automotive landscape.
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