(CercleFinance.com) – Deutsche Bank initiated coverage of Porsche AG shares on Tuesday with a buy recommendation and a target price of 115 euros.
In a research note, the analyst recalls that the luxury car manufacturer – whose financial results are holding up well in periods of crisis – is on track to generate average annual growth of 5% to 10% in its activity, while improving its profit margins despite its rise in the electric vehicle segment.
As such, the intermediary believes that Porsche is a good example of a successful transition to electrification, without any prejudice to the level of brand value.
For DB, the IPO of the sports car manufacturer therefore offers investors the opportunity to participate in a file with solid fundamentals, but also development opportunities via new offers (especially with the Macan), the merchandising and licensing agreements.
“If Porsche has already signed very good performances since its introduction, we believe that there is still upside potential,” says the professional in his note.
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