Porsche Automobil Stock: Margin Pressure Triggers Major Restructuring

Porsche AG faces significant challenges as its operating margin encounters substantial pressure, prompting the implementation of a comprehensive cost-intensive action program. The sports car manufacturer projects a further decline in operating margin to 10-12% for the current year, falling notably short of the initial 14-15% target. This downturn has significantly impacted the Porsche Automobil Holding SE, which now anticipates substantial write-downs between 2.5 and 3.5 billion euros on its Porsche AG investment. Despite these headwinds, the company maintains its commitment to dividend stability and targets revenue of 39-40 billion euros by 2025. Management has already initiated leadership changes to drive strategic realignment efforts.

Market Response and Dividend Outlook

The company's stock has shown resilience amid these challenges, with Porsche Automobil's preferred shares recording a 1.0% increase to 37.31 euros in recent trading. Analysts maintain an optimistic outlook, projecting a dividend increase to 2.89 euros per share for the current year, up from the previous year's 2.56 euros. The average analyst fair value estimate of 38.57 euros suggests potential upside, though the stock remains significantly below its 52-week high of 52.32 euros reached in April 2024.