JPMorgan Chase & Co upgraded Volkswagen Finance (00626-HK) to overweight from neutral and raised its target price to HK $6.00 from HK $4.50 after raising its 2011 net profit forecast by 7.5 per cent, mainly driven by higher revenues.

Motors also expects Volkswagen's credit costs to continue to fall to 124 basis points in 2010, which will be the main driver of rising profits because of improved credit quality. The bank also expects loan growth to rebound (up 7.7%) driven by mortgages and consumer credit and that spreads will remain relatively adaptive if interest rates remain low. Overall, JPMorgan Chase & Co expects Volkswagen financial net profit to increase by 68.1% in 2010 over the same period last year.

Volkswagen Finance closed up 1.82% at HK $4.47.