Two National Guard members shot near White House
Investing.com - Goldman Sachs has initiated coverage on Porsche AG (ETR:P911) with a Neutral rating and a price target of EUR46.00.
The German luxury automaker has faced significant challenges in 2025, including uncertainty around electric vehicle adoption, US import tariffs, and continued weakness in China, according to Goldman Sachs. These issues prompted Porsche’s first restructuring program since its IPO and resulted in €3.1 billion of incremental costs that left its Automotive Return on Sales near breakeven.
Goldman Sachs estimates Porsche’s FY25 Automotive EBIT margin at 0.4%, noting that the company has lowered its mid-term target to "up to 15%" from the previous 15%-17% range. This adjustment has raised investor questions about Porsche’s ability to return to double-digit margins.
The investment bank projects that Porsche can achieve a return to double-digit margins by 2027, as normalization of the 911 model mix combined with wider price increases are expected to improve profitability. This improvement is anticipated despite continued restructuring and tariff headwinds in the near term.
High-end 911 derivatives such as the GT3 and Turbo S, which were delayed by supply chain disruptions in 2024 and are now expected to ship in the second half of 2025, are viewed as key to offsetting lower deliveries. Goldman Sachs estimates FY26/27 deliveries at 275,000/277,000 units compared to 284,000 for FY25.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.