HSBC announced on Tuesday that it had lowered its price target for Porsche AG from €105 to €95, while renewing its buy recommendation on the stock.

In a research note, the broker indicates that it has lowered its operating profit (Ebit) forecast for the luxury carmaker by 5% for 2024, following a disappointing first quarter marked by a 4% drop in deliveries.

However, in view of the increase in R&D investment required for the electrification of vehicles on the horizon, the broker believes that the stock can justify little more than a premium linked to the 'German quality' theme.

Its new price target nevertheless reveals potential upside of around 14%.

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