1102 GMT - Volkswagen is emerging as a relative winner within the challenged European mass-market automakers segment, Morgan Stanley analysts write. New products ramping up between 2025 and 2027 and cost efforts targeting over 15 billion euros in annual savings and lower investment intensity are helping, they add. "This ultimately improves free cash flow sequentially after a decade of elevated spending." While structural margin pressure from Chinese competition limits upside and caps returns below prior-cycle peaks, Volkswagen's strong balance sheet, improving free cash flow, attractive dividend yield, and valuation position it as Morgan Stanley's preferred name among European mass market manufacturers. Morgan Stanley continues to structurally favor premium peers, with Mercedes-Benz and BMW being its only overweight-rated manufacturers. Volkswagen shares fall 0.2% to 102.60 euros.(dominic.chopping@wsj.com)

(END) Dow Jones Newswires

February 13, 2026 06:03 ET (11:03 GMT)

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