Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Porsche Automobile Holding SE's record-high NAV 'unjustified,' claims UBS

Published 01/04/2023, 01:52 am
© Reuters.
PSHG_p
-
POAHY
-

By Sam Boughedda

Porsche Automobile Holding SE's (ETR:PSHG_p) (OTC:POAHY) record-high NAV "seems unjustified," according to UBS analysts.

The analysts reiterated a Buy rating and lowered its price target on the stock to €66 (€1=$1.0881) from €81 in a note Friday, stating they have lowered their dividend expectations for the coming years as the company "needs to deleverage the balance sheet after last year's Porsche AG IPO."

Porsche SE owns an economic stake of 31.9% of VW Group (ETR:VOWG_p) and 12.5% of Porsche AG (ETR:P911_p) as of year-end 2022.

The analysts said they expect the company to "remain a resilient luxury growth story (7% EPS CAGR UBSe) driven by price/mix and new products," adding that "positive development on litigation cases hasn't helped NAV discount so far."

"Porsche SE currently trade at 47% NAV discount, which is significantly above the 10-year average discount of 30%, applied to our PT (28% previously). We see potential for a narrowing of the discount once there are final rulings on the key legal cases," they concluded.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.