Investor Alert

June 16, 2020, 9:23 a.m. EDT

Bank of America downgrades VW, upgrades Daimler ahead of second-quarter results

Bank of America downgraded Volkswagen (FRA:DE:VOW3) and Porsche (FRA:DE:PAH3) to neutral from buy while it upgraded Daimler (FRA:DE:DAI) to buy from neutral. It kept its rating on BMW (FRA:DE:BMW) at neutral. "First, we think premium car makers will perform better than mass market peers [in second-quarter results] driven by their more international exposure, particularly to China. Second, we think that June could be a weak month for Europe with Germany likely to underperform the rest of the region due to delayed demand as consumers wait to benefit from VAT cuts," the broker said.

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