Porsche’s investors lose hope of a supercar stock like Ferrari, as China’s slowdown adds weight to sales slump
- While Ferrari shares have soared more than 50 per cent since the start of last year, Porsche has declined by about a fifth
- Porsche’s price-to-earnings multiple has fallen to a level less than a quarter of Ferrari’s, weighed down by a downturn in China
When Volkswagen spun off Porsche in late 2022, the investment community had visions of a supercar stock to rival Ferrari. The dream is yet to become a reality, and some investors are doubting it ever will.
While Ferrari shares have soared more than 50 per cent since the start of last year, Porsche has declined by about a fifth, sending its market value closer toward parity with that of its former parent – a far cry from a gap that once stood at €40 billion (US$43 billion).
At the same time, Porsche’s price-to-earnings multiple has fallen to a level less than a quarter of Ferrari’s, weighed down by a downturn in China – for long Porsche’s biggest market – and production snags that have hit the roll-out of key models, including the electric version of its top-selling Macan SUV.
Prospects for 2024 aren’t looking up, either, with Porsche telling analysts last week that sales volumes would likely be flat.
“You thought you were buying into a business that was stable and improving, and it turns out that is not the case,” said Jefferies analyst Philippe Houchois. “The question is, when do we start upgrading numbers?”
Porsche will focus “on value-oriented growth and a stable sales level” in 2024, the company said in an emailed response to questions. “We’re laying the groundwork for the future and are updating four out of six model series.”
