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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

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.

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