Porsche AG (ETR:P911) is racing ahead on its promised "solid and stable delivery," according to Deutsche Bank.
In a note, DB analyst Tim Rokossa reiterated his ‘Buy’ rating for the stock and target price of €115.
The sports car manufacturer completed Europe’s largest IPO since 1999 in September 2022, valued at €78bln, with the stock climbing from its debut at €82.50 to its current share price of about €113 on Wednesday afternoon.
Rokossa noted that Porsche reported slightly softer than expected fourth-quarter results, driven by logistical issues and one-offs, but its 2023 guidance was slightly ahead of market expectations.
“Despite the fact that Porsche will not introduce a major new model this year, the company is looking for 9% revenue growth at mid-point which will be primarily driven by price and mix, hence, does not rely on a big volume effect,” the analyst wrote.
Rokossa pointed out that the OEM was more or less sold out, which should provide solid visibility.
“Overall, limited consensus upgrades but the type of solid and stable delivery the company had promised," he concluded.
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