Porsche's long-term recovery path for EBIT margins is becoming clearer, and investors have responded positively, Citi analysts write. Having retested the 43-euro 100-day moving average, Porsche shares have rebounded and may soon test the 50-euro 12-month highs. Citi thinks Porsche's underlying earnings are stabilizing, versus falling peer group margins and consensus. In addition, other German automakers are seeing further deterioration in China, while Porsche doesn't face the same structural competitive threats in the EU and U.S. due to its client positioning. The new Porsche CEO's focus on costs, lower volumes, and higher margins is also a move in the right direction. Citi raises its target price on the stock to 56 euros from 53 euros and reiterates its buy rating. Shares rise 2% to 48 euros. ([email protected])
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Porsche's Path to Margin Recovery Becoming Clearer — Market Talk
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Porsche's long-term recovery path for EBIT margins is becoming clearer, and investors have responded positively, Citi analysts write. Having retested the 43-euro 100-day moving average, Porsche shares have rebounded and may soon test the 50-euro 12-month highs. Citi thinks Porsche's underlying earn…