Right now’s share: Porsche SE – a misunderstanding with penalties?

Dear Readers,

Please do not confuse the Porsche SE with the sports car manufacturer Porsche AG. The Porsche-Piech family has only accumulated Volkswagen shares in the listed holding company. It is important to understand who is the investor in the projects of Porsche and Volkswagen.

Because if you want to take part in a potential IPO of Porsche AG, you’d better take a look at Volkswagen stock. But first things first: Together we will now look at all the important backgrounds to the Porsche IPO. I hope you enjoy reading!

Bernstein Research Center!

The Porsche SE has apparently been put under the microscope by the analysis firm Bernstein Research. Because in the past 2 weeks, 4 new analyzes have been published – which is somewhat unusual. These recommendations include “sell” only. All other analyst firms posted either a “Hold” or a “Buy” continuing recommendation.

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Porsche stock: underperforming?

A new analysis by Neal Beveridge of Bernstein Research was published just yesterday. The Porsche SE rating for VW Canopy was left at “underperforming” with a price target of €60. According to experts, sales momentum for electric and hybrid vehicles as well as car batteries – as expected – has fallen. The analyst explained in his industry study that this should continue to weaken in May. Accordingly, the lockdown measures combined with some supply chain issues could have caused a downturn in Europe.

It also shows a significant slowdown in growth in the most important market in China. But there are already signs that the situation is improving. This is due to a possible end to the ongoing Corona lockdown. Looking at the entire industry, the expert prefers Mercedes-Benz, BMW and Volvo cars. These suppliers will therefore have the opportunity to use their pricing power to offset short-term inflationary pressure.

When will Porsche be released to the public?

It doesn’t stop back and forth. As you have already noticed, Porsche will be separated from the Volkswagen Group and listed on the stock market as an independent company. The group itself is planning an initial public offering this year, specifically in the fourth quarter of the current trading year. But be warned: the Porsche SE should not be confused with sports car maker Porsche. The Porsche-Piech family has accumulated Volkswagen shares in the listed holding company.

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This holding company must then receive a prohibited minority in Porsche AG as part of the IPO, i.e. a minority of votes sufficient to prevent voting on certain decisions. Volkswagen could use the income to increase investment in electric mobility, software development and digital platforms. However, there are a number of factors that can currently put a wrench in the works. However, there has recently been a good indication of a possible IPO.

The same major shareholders positions!

About a month ago, the main owner, Porsche SE, slightly increased his stake in Volkswagen. The move shows that the holding company expects to go public with Porsche AG, despite ongoing geopolitical tensions. This is how the company positions itself for a potential IPO. The percentage is now 31.9 percent. The family holding company said it was previously 31.4 percent. The proportion of voting rights remained at 53.3%.

Participate in the sports car industry!

In a new round of financing, Croatian sports car maker Rimac has raised a new €500 million, with Porsche claiming to have invested a double-digit million. In the end, the Volkswagen subsidiary’s participation remained at around 20 percent. The company had already invested in Rimac Group in 2018 and gradually increased its stakes. However, the founder of the company remains the shareholder who owns the largest number of shares. The sports car manufacturer intends to use the new capital to invest in expanding production for large projects.

Cut the analyzer!

At the moment, Porsche Automobile Holdings SE is covered by 13 analysts of leading companies. Currently 9 experts are of the opinion that investors should continue to buy the stock. In addition, there are 3 “hold” recommendations and one “sell” rating. The average target price is 105.69 euros per share. Compared to yesterday’s closing price, there is another 33.5 percent upside potential.

End of the day!

In my opinion, by increasing the stake, Porsche SE wants to benefit more from the planned private profits. The move also shows that the holding company is expecting an IPO despite the Ukraine war, although it was recently said that plans would have to be adjusted if the war drags on for much longer.

At the moment, it appears that Porsche AG will be separated this year and may be listed on the stock exchange as a separate company. The issue size can range from 15-25 million euros, making Porsche one of the largest initial public offerings in the world. If you now follow the opinion of some analysts, investors who want to participate can take a closer look at Volkswagen stock.

Buy, keep or sell – your Porsche Automobil Holding analysis history 05.06. gives the answer:

How will the Porsche Automobile Holding Company develop from now on? Is the entry worthwhile, or should investors sell instead? Find out the answers to these questions and why you need to act now in the current Porsche Automobil Holding analysis.

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