Porsche is one of the biggest automotive companies in the world by market capitalization. Interestingly enough, the luxury carmaker only had its initial public offering (IPO) back in late 2022.
In the interest of time, here is an abbreviated account of what followed. Porsche stock (ETR: P911) reached an all-time high (ATH) of €118.90 in mid-April of 2024 — some 44.12% above its debut price.
However, consistent supply chain issues and shrinking market share in the crucial Chinese market have led to a drop down to €57.64 by press time, equating to a 51.61% loss since the ATH. At present, Porsche stock is trading at an all-time low.
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With that said, there are several silver linings currently at play. Since the start of the year, the price of P911 stock has only dropped by 0.52%. While that is far from an enviable performance, it still signals that the company’s woes might be coming to an end.
In addition, the automaker has embarked on several strategic initiatives — including a change of key personnel. Slowly but surely, Wall Street has begun to take notice, as several renowned firms have recently set bullish price targets on Porsche stock. Let’s take a closer look at the exact details.
Porsche stock appears primed for a rebound
Over the course of 2024, Porsche delivered 310,718 vehicles. Despite this figure equating to a 3% decline on a year-over-year (YoY) basis, deliveries still came in above analyst expectations.
While Barclays noted that the surge in deliveries, mostly caused by the popularity of the company’s second electric vehicle, the E-Macan, likely won’t be maintained, this latest development was enough for Barclays to maintain an ‘Equal Weight’ rating with a €70 price target. If met, this forecast would equate to a 21.44% increase in price.
What’s more, Barclays expects to see annual earnings per share (EPS) growth of 10% in 2025 and 2026, driven by pricing power and a robust product mix.
Deutsche Bank likewise set a €70 price target for Porsche stock, while Goldman Sachs is a bit less bullish, and set a €65 forecast. Citi, on the other hand, maintained a ‘Buy’ rating with a €72.00 price target.
The Street high price forecast, however, comes from JPMorgan analyst Jose Asumendi, who set a €120 price forecast for P911 shares, which implies a 108.18% upside.
So, what caused his widespread show of support? Analysts reacted positively to news that two company veterans — Jochen Breckner and Matthias Becker, would be taking over as head of finances and IT and head of sales and marketing, respectively.
To boot, Porsche’s decision to resume internal combustion engine vehicle development to serve markets where demand is still strong was hailed as a prudent decision — as was the company’s decision to reduce exposure to China by cutting its dealership network by 30%.
Featured image via Shutterstock
