Stifel maintains its 'hold' rating on Porsche shares, with a price target reduced from 99 to 85 euros.

The analyst reports that the PE 2026 ratio, based on consensus projections, has fallen below 11x. As a result, the stock has undergone the weakest performance among European OEMs since the start of the year and over a year, the broker points out, indicating that it is "time to review the investment case".

High residual values (especially for the 911) are a major asset of the Porsche brand and an investment argument. Nevertheless, the low second-hand price of the Taycan (an all-electric vehicle) is a 'major concern', acknowledges the analyst.

What would happen if the electric Macan (and later the electric Cayenne, 718 and Panamera) faced similar challenges? ', asks Stifel.

For the broker, a revaluation of the stock would require proving that the residual value of EVs (electric vehicles) is at a similar level to that of ICEVs (internal combustion vehicles).

Nevertheless, Stifel anticipates a 2nd quarter better than the first, with an EBIT margin in line with the 2024 guidance, 'which would offer some short-term relief', assures the broker.


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