AlphaValue has raised its recommendation on Porsche shares from 'add' to 'buy', with a target price of 67.8 euros, suggesting a potential upside of close to 40.4%.

The broker revises downwards its DCF (discounted cash flow) estimate on Porsche by 26% (from 117 to 86 euros), the value of financial fixed assets having been reduced by around 6 billion euros since the last update (from around 36 billion euros to around 30 billion euros).

EPS are also revised slightly downwards, expected for 2023 at 19.8 euros (vs. 20.9 euros previously) and for 2024 at 19 euros (vs. 19.1 euros previously).

The change in our EPS forecasts stems mainly from the change in our estimate for Volkswagen, which was revised downwards by our automotive analyst following the announcement of a non-cash impact of E2.5 bn linked to the revaluation of hedging transactions outside hedge accounting," says the broker.

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