By Scott Kanowsky
Investing.com -- HSBC has initiated its coverage of Porsche AG (ETR: P911_p ) with a "Hold" rating, arguing that that the sports car maker has a "bright future" due to its "enviable" brand name.
Analysts at the bank said that the company, which was listed by majority owner Volkswagen (ETR: VOWG_p ) at a $72 billion valuation in September in Germany's second-largest market debut ever, has set out achievable targets and appears to be well-positioned to bring in "robust" future cash flows.
Porsche AG's plans to expand into manufacturing electric vehicles also look "promising," the analysts said.
They added that the market is still trying to find the "right" valuation level for the automaker, claiming that the value is closer to rival Ferrari NV (BIT: RACE ) than they initially predicted. HSBC set its price target for Porsche AG (F: P911_p ) at €104 (€1=$1.0542) a share, below its Friday close of €107.
In a separate note, analysts at JPMorgan predicted that 2023 will mark a strong earnings year for the automotive industry thanks in part to lower raw material cost volatility and increased supply chain stabilization. Their overweight stocks included Renault (EPA: RENA ), Mercedes Benz Group AG (ETR: MBGn ), and Stellantis NV (BIT: STLA ), but they liked Porsche AG as a choice within the luxury car segment as well.
Shares in Porsche AG were slightly lower on Monday. The stock is trading close to 30% higher than its IPO price of €82.5 a share.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.