(CercleFinance.com) – Stifel renewed its buy recommendation and its price target of 308 euros on Volkswagen on Thursday, raising the prospect of an IPO for Porsche, which the investment bank considers more and more likely .
In its research note, the American establishment recalls that VW does not have an irreproachable record in terms of takeovers, its acquisitions having often proved costly (Scania, Navistar, Europcar).
According to Stifel, the German automaker is not much better off in terms of its IPOs, as illustrated by the recent failed IPO of Traton or the sharp decline in Aston Martin shares since the 2018 IPO .
According to analysts, a possible IPO of Porsche could, for its part, create more value.
The bank of St. Louis indeed points out that the luxury car manufacturer is in a “very good phase” at present, as evidenced by the success of the electric version of the Taycan.
For Stifel, Porsche could thus be valued around 173 billion euros based on the current PER of its competitor Ferrari.
‘Some might be tempted to argue that Porsche is the finest asset in VW’s portfolio and that if they part with it, the rest of the group will find itself mechanically devalued’, underlines the intermediary.
Stifel nevertheless estimates that even without Porsche, Volkswagen’s free cash flow (FCF) would still exceed 10 billion euros, a level which he believes limits the downside potential given the stock’s current PER (5.1x).
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