01:52 AM EDT, 05/14/2026 (MT Newswires) -- RBC Capital Markets expects Volkswagen (VOW.F, VOW3.F) to recognize International Emergency Economic Powers Act-related benefits as early as the second quarter, as it took note of the German automaker's first-quarter results.

"Management declined to book any IEEPA-related benefit in Q1, citing insufficient clarity, though we think tailwinds could be recognized as early as Q2. Given its US production volumes, we think the potential IEEPA- related tailwinds could be greater than Mercedes (EUR135M) but less than GM and STLA (EUR500M and EUR400M, respectively),"analysts said Wednesday.

During the first quarter, Volkswagen reported an EBIT of 2.5 billion euros and a margin of 3.3%, missing the consensus of 2.8 billion euros and 3.6%, respectively. Analysts largely attributed the miss to the one-time 500 million-euro charge for ending ID.4 production at the Chattanooga plant. Excluding the charge, EBIT was 3 billion euros, with 3.9% margins.

"VW delivered a solid Q1 EBIT beat ex-the EUR500M ID.4 write-off, and maintained its '26 guide since the company's commodity exposures are largely hedged... Core brand margins appear healthy and we view the Target Picture 2030 as a credible framework to drive margins towards the 8-10% target,"RBC added.

The stock's price target of 131 euros was reiterated, with an outperform rating.