Porsche Automobile Holding SE's record-high NAV 'unjustified,' claims UBS

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Porsche Automobile Holding SE's record-high NAV 'unjustified,' claims UBS
Credit: © Reuters.

By Sam Boughedda

Porsche Automobile Holding SE's (ETR: PSHG_p ) (OTC: POAHY ) record-high NAV "seems unjustified," according to UBS analysts.

The analysts reiterated a Buy rating and lowered its price target on the stock to €66 (€1=$1.0881) from €81 in a note Friday, stating they have lowered their dividend expectations for the coming years as the company "needs to deleverage the balance sheet after last year's Porsche AG IPO."

Porsche SE owns an economic stake of 31.9% of VW Group (ETR: VOWG_p ) and 12.5% of Porsche AG (ETR: P911_p ) as of year-end 2022.

The analysts said they expect the company to "remain a resilient luxury growth story (7% EPS CAGR UBSe) driven by price/mix and new products," adding that "positive development on litigation cases hasn't helped NAV discount so far."

"Porsche SE currently trade at 47% NAV discount, which is significantly above the 10-year average discount of 30%, applied to our PT (28% previously). We see potential for a narrowing of the discount once there are final rulings on the key legal cases," they concluded.

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