Porsche SE’s holdings within Volkswagen and Porsche AG (ETR:P911) are at a “significant” discount, according to analysts at Deutsche Bank, which retained its buy rating with a lower target price of €97, down from €110.
Porsche SE, which is the holding company for investments in VW and Porsche AG, owns 31.9% of Volkswagen and a 12.5% stake in Porsche AG.
Deutsche Bank said that as a result of participating in Porsche AG’s initial public offering last year, the largest ever in Europe with a market cap of €78bn, Porsche SE was able to double its core investments.
“The debt-financed acquisition of Porsche AG shares turned the net cash position of the holding into a net debt one; however, the company expects net liquidity to improve by around €1bn this year,” said the broker.