Porsche’s pricing power is a “safe haven” in a competitive mass market, said analysts at JPMorgan.
The broker believes the luxury car maker's valuation will re-rate because of its battery electric vehicle (BEV) product cycle accelerating into growth, pushing its SUV range above the Cayenne models.
“Porsche’s valuation should re-rate thanks to its luxury pricing power coupled with a strong product portfolio, allowing the firm to grow ahead of its peers,” said analysts.
Taking a deeper dive into Porsche, JPMorgan believes its market position allows it to focus on value creation from here on in.
Revenue growth hinges on three drivers, which include its BEV rollout, its luxury SUV BEV which targets higher margin and focus on its two platforms, one being two-door sports cars and the other sports limousines and SUVs.