LONDON -- UBS cut its share price target for Europe's biggest car maker Volkswagen to 25 euros from 29 euros and slashed the company's 2005 earnings per share forecast by 14 percent to 2.30 euros.
"We estimate German car demand to fall 2.2 percent in 2004 compared to our earlier estimate of a four percent rise," UBS analyst Graham Phillips said on Wednesday.
UBS already has a "reduce" rating on Volkwsagen.
By 0843 GMT, shares in Volkwsagen were up 3.7 percent at 33.17 euros while most auto shares were lower. Dealers said the stock was supported by the prospect of former DaimlerChrysler manager Wolfgang Bernhard, a restructuring expert, joining Volkswagen. Sources close to the company told Reuters on Wednesday that Bernhard would join the VW board.