Porsche AG Preferred shares advanced 2.4% in today’s trading to reach €47.08, supported by an upbeat analyst note from UBS that singled out the Stuttgart-based sports car maker as the leading clean Q2 performer across the bank’s European automotive coverage.
UBS set out a near-term operating-margin target of almost 10% on an adjusted basis for the second quarter, explicitly excluding about €250 million in realignment costs. The bank also expects automotive free cash flow of roughly €0.5 billion for the period. Those projections were presented as a constructive read-through ahead of Porsche’s scheduled earnings publication on July 29.
The stock’s momentum received additional backing from reports that Porsche plans to cut up to 4,000 further positions, concentrated in management and administration. The accounts also indicated that about 30% of capacity at the Weissach development site is under review. Management is said to be preparing a comprehensive future package to be announced by the end of July, reinforcing a narrative of active cost reduction and organisational restructuring under CEO Michael Leiters.
Market conditions offered a mildly supportive backdrop as well, with the German DAX index edging roughly 0.3% higher during the session. UBS’s longer-term upgrade case, highlighted in its analyst note, envisions Porsche’s operating margin rising materially - from about 7% in 2026 to around 13% by 2030 - through a combination of cost savings and a more balanced product portfolio. The bank also flagged an October capital markets day as a potential event that could trigger further re-rating of the shares.
Trading in the preferred class saw a session peak at €47.30, but that remains below the 52-week high of €50.66. Market participants noted there could be scope for additional recovery in the preferred shares if Porsche’s Q2 results confirm UBS’s constructive outlook.
Contextual note - UBS’s near-term margin and cash-flow expectations, reported job reductions focused on management and administration, the Weissach capacity review, the planned end-of-July package, and the July 29 earnings release are all central to the current repricing of Porsche’s preferred stock. The DAX’s modest gain provided a stable, if not decisive, market environment for the move.