A ‘very good year’ for Porsche may not be enough to convince investors – Bernstein

By Sam Boughedda 

Bernstein analysts maintained an Underperform rating on Porsche (ETR:) but raised the price target on the stock to €87 from €85 in a note to clients on Wednesday.

The analysts acknowledged that Porsche AG is “about to have another very good year,” with the supply shortage and strong premium demand creating a huge backlog putting “the company in control of their destiny in 2023.”

However, they believe it “may not be enough to convince investors to pay for the highly priced equity.”

Commenting on Porsche’s Q4 results, the analysts stated: “Group revenues in ’22 of €37.6b were slightly below guidance while operating margin of 18% were at the top of the range. Q4 results could have been better, impacted by IPO bonuses, supplier support, and logistic delays.”

“Upside catalysts are limited, but this year’s performance will be upheld by the orderbook. Medium-term, we are -6% and -4% below cons. EPS (in ’24-’25) and see potentially higher free-float as the strongest downside catalyst for the shares,” the analysts concluded.