Morgan Stanley increases target price, yet issues a cautionary note instead.
Porsche's Stock: A Mixed Bag of Optimism and Caution
Porsche's stock is on an upswing, thrilling its shareholders, but not everyone's a fan. Since its initial public offering at 81 euros, Porsche's DAX stock has bounced back by approximately 25%. However, certain analysts remain skeptical about the stock's long-term potential.
Harald Hendrikse, an analyst from Morgan Stanley, doesn't appear too excited about Porsche's stock. Last fall, he set a price target of 82.50 euros for the preferred stock, well below the average analyst forecast of 108 euros. Although he's recently raised his 12-month price target for the carmaker to 90 euros, his initial skepticism persists.
Porsche's Stock: Analysts' Point of View
Some analysts, on the contrary, are quite optimistic about Porsche's stock. For example, Patrick Hummel of UBS recently boosted his price target for the stock from 105 to 115 euros. He believes Porsche has effortlessly met its annual targets with impressive fourth-quarter delivery figures.
Citigroup also exudes a bullish stance, foreseeing a 12-month potential for Porsche AG stock up to 120 euros. Jürgen Pieper from Metzler Bank is even more optimistic, recommending the DAX stock with a price target of 130 euros.
Amid these positive sentiments, only one out of the 23 analysts listed on Bloomberg currently suggests selling Porsche's stock. Daniel Roeska of Bernstein predicts a drop in the Porsche stock to 85 euros.
BÖRSE ONLINE anticipates Porsche's well-positioned sports car segment stock to experience further upside potential, recently increasing its price target from 120 to 125 euros.
Conflict of Interest Disclosure
As a side note, the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, and the author have entered into direct and indirect positions in the mentioned financial instruments, which could potentially benefit from the stock's price developments resulting from the publication: Porsche AG.
Tariff Headwinds and Challenges Ahead
Despite the optimistic outlook, Porsche faces numerous challenges. With 100% of its U.S.-bound vehicles imported from Europe and Malaysia, Porsche experiences a 25% U.S. tariff on automotive imports, which has the potential to impact the stock negatively. Moreover, battery cell tariffs on Chinese-made cells can add up to $3,000 per vehicle, escalating costs and supply challenges.
Porsche's Potential: Recovery and Growth
While these hurdles exist, analysts still see potential upside from Porsche's strong electrification progress and premium brand positioning. Despite delivery declines, electrified vehicles accounted for 39% of Porsche’s sales in Q1 2025, underscoring its commitment to the EV transition. Furthermore, Oddo BHF continues to rate Porsche as "Outperform," expressing faith in the company's long-term potential and eventual recovery from current challenges.
In conclusion, Porsche's stock presents a mix of cautious optimism and concerns, requiring investors to closely weigh the various factors impacting the company's short- and long-term prospects.
Some analysts view Porsche's stock as a promising investment opportunity, such as Patrick Hummel of UBS, who recently increased his price target for the stock from 105 to 115 euros, reflecting his positive stance on Porsche's impressive fourth-quarter delivery figures and successful meet of annual targets. On the other hand, technology advancements in the field of investing, like electrification, could also play a significant role in Porsche's growth, as demonstrated by its 39% sales of electrified vehicles in Q1 2025.
