Porsche AG (ETR: P911) shares were in focus on Tuesday after Barclays upgraded the luxury automaker to “Equal Weight” from “Underweight,” citing a lack of near-term downside catalysts despite ongoing concerns about deliveries and profitability.
The brokerage also raised its price target on Porsche stock to €50 from €40, representing a 25% increase. However, the new target implies only limited upside from the stock’s recent closing price of €49.81.
The upgrade comes after Porsche shares significantly outperformed the broader European auto sector over the past three months, gaining roughly 30% relative to the SXAP index since late March.
Why Did Barclays Upgrade Porsche Stock
Barclays said it no longer sees immediate risks that could trigger a sharp decline in Porsche shares.
Analysts noted that earnings expectations appear to have stabilized after months of downward revisions, while the market is increasingly looking ahead to new product launches and management initiatives expected over the next two years.
We see no near-term negative catalysts,”
Barclays analysts said while announcing the rating change.
The brokerage also indicated that its 2028 earnings projections are now broadly aligned with market expectations, reducing the justification for maintaining a bearish stance on the stock.
Porsche Deliveries Expected to Recover After Two Difficult Years
Despite the rating upgrade, Barclays remains cautious about Porsche’s near-term operating performance.
The bank expects vehicle deliveries to fall 13% in 2026 to approximately 242,000 units. Deliveries are then projected to decline another 11% in 2027 before rebounding in 2028 as Porsche introduces several new models.
Among the key launches expected to support growth are a successor to the Macan internal combustion engine model and a new electric version of the 718 sports car.
The brokerage expects these products to help Porsche recover market share and improve earnings momentum heading into 2028.
Revenue and Profit Outlook Remains Under Pressure
Barclays reduced its earnings forecasts for the next two years, cutting its 2026 underlying EBIT estimate by 13% and its 2027 forecast by 17%.
The bank expects Porsche to generate revenue of €35.46 billion in 2026, followed by €33.95 billion in 2027 before recovering to €36.90 billion in 2028.
Profitability is also expected to improve gradually. Barclays forecasts EBIT margins of 8.8% in 2026, 8.1% in 2027 and 10.5% in 2028, compared with a reported margin of just 1.1% in 2025.
Meanwhile, earnings per share are projected to reach €2.37 in 2026, €2.09 in 2027 and €2.94 in 2028.
Is Porsche Stock Overvalued?
One area where Barclays remains cautious is valuation.
The bank noted that Porsche currently trades at around 17 times projected 2028 earnings, significantly above competitors such as BMW and Mercedes-Benz, which trade at roughly five times earnings.
While analysts described Porsche’s valuation premium as “very rich,” they also acknowledged that there is currently no clear catalyst that would force investors to reassess that premium in the near term.
Investors Await Porsche Analyst Event
Attention now turns to Porsche’s analyst and investor event scheduled for June 20, ahead of the company’s second-quarter earnings report on July 29.
Investors are also watching for updates from Chief Executive Michael Leiters, who is expected to host a capital markets day later this year outlining Porsche’s long-term strategy.
The upcoming events could provide further insight into the company’s growth plans, electric vehicle strategy and efforts to improve profitability in an increasingly competitive global automotive market.
Barclays upgraded Porsche to “Equal Weight” from “Underweight,” citing stabilizing earnings expectations and a lack of near-term downside risks. However, the bank sees only limited upside from current levels.
Barclays raised its price target for Porsche shares to €50 from €40. The new target is only slightly above the stock’s recent closing price, suggesting analysts expect modest gains ahead.
Porsche is scheduled to release its second-quarter 2026 earnings on July 29. Investors will also be watching the company’s analyst and investor event on June 20 for updates on strategy, new vehicle launches, and profitability targets.
