Should you bet on a VW comeback?

Shelly Hagan @shellykhagan
Ashlee Espinal | CNBC

Nearly 11 months after Volkswagen's emission scandal, the company's stock price has recovered to 79 percent of its pre- price. Back in September, the German auto maker was caught cheating on emission tests by programming the diesel engines to activate certain emissions controls only in a controlled lab environment. But the stock has been on the rise recently.

But not everyone is impressed. Despite the rebound, AlphaValue analyst Hans-Peter Wodniok remains bearish on the company. Wodniok notes that VW's management is they key reason behind his "sell" rating.

"It is the misbehavior of management to its European clients which is unacceptable and which will have an impact on future possibility," Wodniok said.

 Unlike the U.S., Europe has more lenient emissions standards for motor vehicles.

"From a legal point of view, VW has done nothing wrong, [in Europe], but from a logical point of view, if a, [European], client hears about and sees a U.S. consumer getting compensated and they aren't getting anything… well you think twice," Wodniok said.

Wodniok has a long term sell on the company.

On the other hand, several firms still maintain positive ratings on the company. Kristina Church, head of European Automotive Research at Barclays, believes there's an earnings potential in a market that doesn't see any upside.

"It's an opportunity call in terms of valuation- the markets believe there is no upside potential, but we think there is earnings potential," Church said.

Barclays recently upgraded VW to overweight from equal weight in April. The firm says VW management is working on "significant structural changes to the cost base and decision-making process to be more in line with its global peer group".