Porsche: Bernstein initiates coverage as a seller

(CercleFinance.com) - On Wednesday Bernstein analysts began to monitor Porsche AG shares with an "underperform" rating and a target price of 85 euros, believing that the carmaker's stock is "as expensive as a 911".


While they acknowledge that the German group makes "fantastic" cars, the analyst also noted that half of its catalogue is made up of vehicles worth less than 100,000 euros, which makes it vulnerable to economic cycles.

The broker also believes that the company's governance structure, as well as delays in the development of technology and software by Volkswagen, are also overshadowing its prospects.

Bernstein notes that despite weak consumer spending, soaring costs and product delays that could well weigh on results next year, the market consensus remains positive on the stock.

Flash cars stall too, with the stock down over 1.5% this afternoon.



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