📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Porsche AG shares rise after investor call

Published 07/10/2024, 07:50 AM
Updated 07/10/2024, 09:00 AM
© Reuters. FILE PHOTO: The Porsche Logo is seen in Gilching near Munich, Germany July 28, 2017. REUTERS/Michaela Rehle/File Photo
DE40
-
P911_p
-

FRANKFURT/LONDON (Reuters) -Shares in luxury carmaker Porsche AG rose 3.9% and were among the biggest gainers in Frankfurt's blue-chip DAX index on Wednesday after positive brokerage comments following a call with investors.

Porsche, which is majority owned by Volkswagen (ETR:VOWG_p), held on Tuesday what is known as a pre-close call - a briefing for analysts before a quiet period pending quarterly results begins.

One trader said Porsche had sequential margin improvement and a better cash conversion for the second quarter, the latest sign that high-margin luxury cars offer some margin protection in the face of a weaker Chinese market.

Goldman Sachs, keeping a "buy" rating on the stock in a note following the call, said it expected "a more normalised quarter at 2Q, following a challenging 1Q when the company underwent the changeover of its Panamera and Taycan models and experienced some constraints on shipments into the US".

© Reuters. FILE PHOTO: The Porsche Logo is seen in Gilching near Munich, Germany July 28, 2017. REUTERS/Michaela Rehle/File Photo

Stifel also said the second quarter operating margins should show a "clear improvement" over those in the first quarter and that the group during the call confirmed its 15-17% margin guidance for the full year.

Shares in Porsche AG, which was carved out from parent Volkswagen in 2022, have lost more than a fifth over the last three months, in part because of weakness in China, the group's most important market.

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.