Porsche AG (ETR:P911) has been backed with a ‘buy’ rating by Citi analysts, which downplayed fears over European car demand and pointed to confidence in a turnaround at the manufacturer.
Shares have faced a hefty drop over the past week, adding to a 28% fall for the year so far.
Despite this, Citi doubled down on backing, acknowledging: “Obviously, we now wish we had waited a little longer.”
Fears over investors not wanting to own European cars were “unlikely to materialise,” or at least be “as impactful” as currently thought, Citi said.
Confidence was also laid out on Porsche’s management turning around execution problems, with Citi also highlighting the company’s latest 911 model, for which it unveiled a new body kit on Friday.
“Capitulation like this is normally a good opportunity,” Citi added.
Shares climbed 0.5% on Friday.