The last time we wrote about Porsche and Ferrari, we already mentioned that Porsche needed to come up with a stronger strategy to improve profitability. Since then, Porsche has published its latest figures, and Ferrari has undergone a necessary correction after a long period of growth. It's high time to reassess both stocks and look ahead.

To stay fully informed, we recommend reading the previous article from February 2025.

Click HERE for the article "Porsche: Shifting Gears in Exclusivity!"

The Current Situation at Porsche

Porsche’s recent figures show that momentum is still clearly under pressure. While the brand had long benefitted from strong demand and high margins, growth is now visibly weakening. Revenue came in at €36.3 billion, a decrease of €3.8 billion compared to the €40.1 billion revenue from the previous year.

At the same time, profitability has deteriorated significantly. Operating profit dropped to around €0.4 billion, compared to €5.6 billion the previous year. This marks a decline of over 90%, making it one of the weakest periods in a long time.

The margins also clearly reflect this pressure. While Porsche previously achieved margins of around 14%, this level is now around 1.1%. This significant drop is further compounded by a decrease in car sales of about 10%, with weaker demand in China still playing a major role.

In addition to the disappointing demand, costs are also rising, partly due to investments in electrification and technological innovation. This keeps the pressure on profits high, and the results are lower than the market had expected. Although Porsche itself anticipates a recovery, the outlook remains cautious. Margins are expected to remain limited to around 5.5% to 7.5% for the time being, and the additional costs will continue to weigh on profit development.

Investors have reacted cautiously to this combination of factors, which has translated into weaker price development. The market seems less willing to justify the previous high valuation, especially now that it’s clear that the recovery will likely be more gradual than hoped.

Porsche’s Stock Performance and Yelza’s Expectations

Porsche has faced significant stock price declines in recent years, but a successful restructuring could present a speculative opportunity to enter, especially if the bottom forms around €24. This could pave the way for a potential rally upward, with a 12-month price target of €40.

Conclusion

The recent price decline of both Porsche and Ferrari reflects the broader challenges in the luxury car industry, where both demand and costs are putting pressure on the performance of these brands. At Porsche, weaker demand, especially in China, and higher costs for electrification remain issues. This offers a speculative opportunity for investors around €24, with a 12-month price target of €40.

Ferrari seems to have reached the end of its correction, and the brand is well-positioned for a longer upward trend. We expect the correction to end around €260, making it an interesting time to take a modest position in the portfolio, with a 12-month price target of €380. After this recovery, the price could further increase to the multi-year price target of €490.

Porsche will release its Q1 2026 quarterly figures on April 29.

Ferrari will release its Q1 2026 quarterly figures on May 5.

Disclaimer: Investing brings risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. Therefore, they are for educational purposes only.