Porsche: Stifel reduces target price

(CercleFinance.com) - Stifel maintains its 'hold' rating on Porsche shares, with a target price reduced from E99 to E85.


The analyst reports that the stock's 2026 P/E multiple, based on consensus projections, has fallen below 11x. As a result, the stock has undergone the weakest performance among European OEMs since the start of the year and over a year, the broker points out, saying that it is time to review the investment case.

High residual values (especially for the 911) are a major asset of the Porsche brand and an investment argument. Nevertheless, the low second-hand price of the Taycan (an all-electric vehicle) is a 'major concern', the analyst acknowledges.

What would happen if the electric Macan (and later the electric Cayenne, 718 and Panamera) faced similar challenges?, Stifel wopnders.

For the broker, a revaluation of the stock would require proving that the residual value of EVs (electric vehicles) is at a similar level to that of ICEVs (internal combustion vehicles).

Nevertheless, Stifel expects Q2 to be better than Q1, with an EBIT margin in line with the 2024 guidance, which would offer some short-term relief, the broker says.


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