Company Reports

Porsche reported lower first-quarter earnings, leading us to decrease our fair value estimate by 1.5% to EUR 93 per share, down from EUR 94. The decline in our fair value estimate is largely attributable to our lower margin expectation for 2024. We now forecast the adjusted operating margin to land at 16% (midpoint of guidance) this year.

Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium to luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat.

Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium to luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat.

Narrow-moat-rated Porsche reported fourth-quarter earnings per share of EUR 1.28, EUR 0.24 below FactSet consensus estimates and EUR 0.11 lower than fourth-quarter 2022 EPS. Consolidated revenue declined 4.5% to almost EUR 10.4 billion from EUR 10.9 billion a year ago as unit volume declined 12.3% year over year. Nonetheless, we reiterate our fair value of EUR 92 per share as our outlook for the company remains unchanged. The 3-star-rated shares of Porsche currently trade at a 6% discount to our fair value.

Narrow-moat-rated Porsche reported third-quarter earnings per share of EUR 1.29, EUR 0.09 less than the EUR 1.38 FactSet consensus estimate and down EUR 0.01 from proforma EUR 1.30 last year. Consolidated revenue rose 10% to EUR 9.7 billion from EUR 8.8 billion a year ago despite a slight 0.4% decline in unit volume to 75,368 from 75,652 in the prior year. Favorable pricing and mix were partially offset by currency. Revenue was slightly better than the consensus by 1%. Due to the time value of money since our last update, we raised our fair value estimate by EUR 2 to EUR 92. The 3-star-rated shares of Porsche currently trade at 6% discount to our new fair value.

Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium to luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat.

Narrow-moat-rated Porsche reported second-quarter earnings per share of EUR 1.49, EUR 0.08 less than the EUR 1.57 FactSet consensus estimate and down EUR 0.15 from pro forma EUR 1.64 last year. Consolidated revenue rose 5% to EUR 10.3 billion from EUR 9.9 billion a year ago despite a 12% increase in unit volume to 86,587 from 77,434 in the prior year. Stable pricing and favorable mix were partially offset by currency and model cycle changes. The 2-star-rated shares of Porsche currently trade at 23% premium to our unchanged EUR 90 fair value estimate.

Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium to luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat.

We have initiated coverage of the shares of Porsche AG with a EUR 90 fair value estimate. Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium-to-luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat. Even so, the 2-star-rated shares currently trade at a 27% premium to our fair value.

Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium to luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat.