‘Porsche isn’t a safe bet in a recession because it’s not as exclusive as Ferrari,’ says Daniel Roeska, an auto analyst at Bernstein.
Porsche is pitching its initial public offering as a chance to invest in a company that combines the best of carmaking rivals like Ferrari and luxury brands such as Louis Vuitton. The problem is, not all investors are buying it.
“Porsche isn’t a safe bet in a recession because it’s not as exclusive as Ferrari,” said Daniel Roeska, an auto analyst at Bernstein. “And if you don’t change the governance and allow Porsche to decide what’s best for itself rather than making decisions at the group level, then you’re not maximising shareholder value.”
While VW did not provide specific numbers or a valuation target in the meetings in Europe and the US, fund managers who attended were left with a positive impression about the brand’s potential to lift margins in the medium term, the people said. Porsche is holding a capital markets day Monday where it could map out a renewed profit push.But several fund managers remain concerned about Porsche’s small free float of 12.
Porsche’s managers “presented their strategy to taking the company forward very well,” said Simon Jaeger, a portfolio manager at Flossbach von Storch. Still, he cautioned that the planned ownership structure is poised to weigh on the company’s valuation.Investors have in the past blamed VW’s convoluted governance structure for its sub-par stock-market performance.
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