By Scott Kanowsky
Investing.com — Shares in Dr Ing hc F Porsche AG Preferred (ETR:P911_p) fell on Wednesday after AllianceBernstein initiated its coverage of the sports car maker with an "underperform" rating.
In a note to clients, analysts at the global asset manager predicted the company, which was listed by majority owner Volkswagen (ETR:VOWG_p) at a $72 billion evaluation in September in Germany's second-largest market debut ever, will not post earnings growth next year due to weak consumer demand, cost headwinds and product delays.
They also noted that recent trading on Porsche's stock – now more than 30% above its IPO price of €82.5 (€1=$1.0336) a share – invites comparison more to a luxury goods business than a car manufacturer. But the analysts still set their price target at €85 a share, flagging that the current valuation ignores the "automotive risks" surrounding the Stuttgart-based firm.
"Near-term inflation will impact its automotive supplier and cost base, and inflation, as well as rising interest rates will cut into demand for its products," the analysts said.
"The pull of Porsche's brand may tide the higher-priced sports and [battery electric vehicle] cars through 2023, but the majority of Porsche's annual volumes are deep in the 'premium' price range (below €100k) and subject to greater cyclicality than true luxury cars."
They added that "a more realistic" price discovery of the stock will likely happen when a six-month lock-up of shares – a period after a flotation during which company insiders are prohibited from selling their holdings – ends in March.
Porsche slips after AllianceBernstein gives carmaker "underperform" rating
Brazil's Nubank rolls out Mexican savings accounts, debit card
Growth stocks boost Wall Street ahead of Fed minutes
Every investor in Progress-Werk Oberkirch AG ( ETR:PWO ) should be aware of the most powerful shareholder groups. We…
The storied luxury shopping arcade will be home to a new expansive Chanel store.
HAMBURG (Reuters) -Volkswagen on Wednesday agreed a two-year wage deal for workers at its western German factories, offering around 8.5% more pay, which was below inflation but above what other employers have yielded in recent weeks. The deal, affecting around 125,000 of the carmaker's employees, would have been considered exceptionally generous until recently but is now below inflation, which was 11.6% last month in Germany, Europe's largest economy. Workers will receive a 5.2% wage hike from June 2023 and another 3.3% from May 2024, as well as a lump-sum payment worth 3,000 euros ($3,093) after tax to help offset soaring inflation.
Among the best stocks to buy and watch now, Deere and Ulta Beauty are in buy zones following recent breakouts in today's stock market action.
Societe Generale will own 51% of the joint venture, while AllianceBernstein will own 49% with the option to sell its share of the business to Societe Generale beginning on the fifth anniversary of the deal’s closing date.
The car maker agreed to a collective bargaining agreement with Germany's IG Metall union covering 125,000 employees, which will increase pay in two stages, by 5.2% in June 2023 and 3.3% in May 2024.
Yahoo Finance Live anchors discuss Volkswagen’s decision to pay workers in Germany $3,000 in bonuses as an attempt to combat inflation.
Be greedy (and lazy) when others are fearful.
Patience can pay off handsomely when you're invested in companies with clearly defined competitive advantages.
With a history of decades-long investing success, billionaire Ken Griffin knows a thing or two about market behavior. Recently, the Citadel Investment Group Founder and CEO offered some of his thoughts on the state of the stock market and where the economy is heading. While Griffin believes inflation has already peaked, he thinks the Fed has yet to truly put the “genie back in the bottle.” He also thinks unemployment is about to rise and expects a recession will likely materialize “sometime in t
Warren Buffett — the Oracle of Omaha — is widely regarded as one of the greatest investors of all time. Berkshire Hathaway Inc. (NYSE: BRK-A) has returned tens of thousands of percent over the years and consistently outperforms the market. Buffett purchased the company for just $8.3 million in 1965, and it’s now valued at nearly $700 billion, roughly a 10 million percent return. But one of Buffett’s top all-time picks and longest-held positions is one you might not expect. Berkshire Hathaway fir
FTX lawyers say a substantial amount of assets are missing or stolen in latest bankruptcy proceedings; Cathie Wood still sees Bitcoin at $1 million
In the early days of the pandemic, investors bet Novavax (NASDAQ: NVAX) would be a coronavirus vaccine winner. When the biotech's vaccine candidate fell behind, though, investors lost faith. With its shares down almost 90% this year, you may be wondering if Novavax presents a great buying opportunity.
The word "hypergrowth" does not describe the current technology bear market. Such a change may point to buying opportunities in tech stocks such as SoFi Technologies (NASDAQ: SOFI) and Zscaler (NASDAQ: ZS). Amid the moratorium on student loan payments because of the pandemic, it had to pivot into other areas of finance.
Among the telecoms is Verizon Communications (NYSE: VZ), the second-largest provider behind AT&T. The stock sports an attractive 6.89% dividend yield, which also places it in red-flag territory. Often, when a stock's dividend yield rises higher than 5%, it's seen as a warning sign that the company won't be able to pay its dividend obligations sustainably. Should Verizon shareholders be concerned?
Tough times are coming. But you can still make money.
This year has been tough for investors. The inflation numbers may have been down in October, but it was still 7.7% compounded on last October’s 6.2%, and that’s too high. Interest rates are rising fast in response, making capital more expensive, and the available cash is chasing goods constrained by tight supply chains and continued COVID lockdowns in China. Food and energy prices are high, and likely to rise, as Russia’s war in Ukraine puts a major clamp on global supplies of natural gas, wheat
Elon Musk has disbanded Twitter's entire office in Brussels after a row over the policing of the social network's content in the bloc.
Even though mid-term election results and encouraging inflation news have pushed U.S. stocks to their highest levels since August, a prominent UBS analyst says a recession is due and the global economy will continue to decline and that markets will … Continue reading → The post UBS Analyst Says This Is When Investors Should Buy the Dip appeared first on SmartAsset Blog.
Amazon (NASDAQ: AMZN) is one of the best-performing stocks of the past generation, but 2022 has mostly been a disaster for the tech giant. The stock is down 47% year to date, revenue growth has slowed to all-time lows, it's closed dozens of warehouses after overestimating demand, shuttered once-promising projects like Amazon Care, and just reported that it's laying off 10,000 corporate employees. While it's clear Amazon has struggled this year, those challenges seem well-reflected in Amazon's stock price.