AUS
NZ
UK
CA
USA
IND
_06_19_2026_10_41_46_758506.jpg)
Highlights:
- Citi upgrades Porsche (LSE:0JHU) to “buy,” citing potential recovery in 2025 and 2026 after a challenging 2024.
- Key improvements in volume, mix, and pricing are expected to offset risks in the Chinese market and drive profitability.
- Porsche’s focus on brand strength and profitability post-IPO positions the company for long-term growth, with Citi setting a price target of €85.
Porsche AG (LSE:0JHU), the German luxury car manufacturer, has been upgraded to a “buy” rating by Citi, following what the US group described as a challenging year for the company. Despite several headwinds, including weak demand in China, falling premium car prices, and tariff concerns, Citi sees a path to recovery for Porsche starting in 2025 and continuing into 2026.
Citi acknowledged that 2024 has been a tough year for Porsche, with the ramping down and up of four new model launches contributing to difficulties. However, the bank believes that while the current year may present more risks, there is significant potential for Porsche to rebound in the coming years.
According to Citi, 2025 and 2026 are poised to be strong years for Porsche, driven by peak demand for new models and an overall improvement in key business factors such as volume, mix, and pricing. These improvements are expected to more than compensate for any ongoing risks related to the Chinese market.
Citi also pointed out that Porsche’s post-IPO strategy has shifted the company's focus toward brand strength, profitability, and pricing power, rather than volume-driven sales under its previous parent, Volkswagen. This change in strategy is expected to bring several benefits, including reduced Macan dilution, enhanced pricing power, improved profit margins, and stronger capital returns.
The bank emphasized that these strategic shifts could lead to an uplift in Porsche’s valuation, especially as the company looks to capitalize on its brand and improved market position. Citi has set a price target of €85 for Porsche shares, up from the current market price of €67.24, reflecting confidence in the company’s long-term prospects.
While Citi acknowledges that 2024 still carries risks, the outlook for 2025 and 2026 is much brighter. The peak in new model demand, combined with improved profitability from enhanced pricing power and stronger profit margins, is expected to drive significant growth for Porsche over the next few years.
