Kepler cuts Porsche stock rating to hold, raises price target to EUR39

On Thursday, Kepler Cheuvreux revised its stance on Porsche Automobil Holding SE (PAH3:GR) (OTC:POAHY), shifting the rating from Buy to Hold, while slightly increasing the price target to EUR 39.00, up from the previous EUR 38.00. The adjustment in the price target reflects updated estimates and target prices for Porsche Holding’s principal investments, Volkswagen (ETR:VOWG_p) (VW) and Porsche AG (P911).

Despite the upgrade in the price target, Kepler Cheuvreux’s analyst pointed out that the recent appreciation in Porsche’s stock price has diminished the potential for further gains, leading to the decision to downgrade the rating. The analyst stated that while the earnings forecasts have been lowered and the target price for P911 has been reduced from EUR 47 to EUR 45, the target price for VW preferred shares has been raised from EUR 100 to EUR 110.

This reassessment of Porsche’s key participations resulted in a slight increase in the target price for Porsche SE from EUR 38 to EUR 39. However, when compared to the current market price, the new target offers limited room for stock appreciation, which the analyst believes does not justify maintaining a Buy rating.

The analyst further explained that although valuation had previously supported a positive outlook on the stock, the recent rise in share price has already capitalized on this advantage. The market’s current valuation of Porsche stock, according to Kepler Cheuvreux, no longer presents a compelling case for an investment rating higher than Hold.

Investors in Porsche Automobil Holding SE are now faced with a more conservative outlook from Kepler Cheuvreux, as the firm recalibrates its expectations for the company’s stock performance in light of recent market movements and valuation assessments.

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