Porsche stock up as investors bet on personalization, premium editions

Investing.com -- Shares of Porsche (ETR:PSHG_p ) climbed on Friday following the company’s investor and analyst day held at the Silverstone Experience Centre.

At 7:55 am (1155 GMT), Porsche was trading 2.6% higher at €40.710.

Analysts from Bernstein in a note said that the luxury automaker’s strategies, particularly around limited-edition offerings and bespoke customer options, play a vital role in driving demand and revenue growth.

The presentations at the event flagged Porsche’s ability to maintain exclusivity and tap into evolving consumer preferences. 

Alexander Fabig, the automaker’s Vice President for Individualisation, outlined the company’s multi-tiered personalisation strategy, which has seen significant uptake. 

Customers can now select from over 120 unique colors through the “paint to sample” program, while higher-tier customisation options even allow clients to match vehicle colors to personal items, like favorite lipstick shades. 

Bernstein analysts mentioned that the revenue generated from such bespoke features has more than doubled in recent years, reflecting growing customer appetite for individualised luxury.

Limited-edition vehicles remain a cornerstone of Porsche’s strategy to reinforce brand exclusivity. As per the analysts, the company strictly limits production runs to no more than 2,500 units per model, with only one or two such models released each year. 

Prices for these vehicles start around €300,000, and customers often add up to €250,000 in personalised upgrades, signaling robust demand. This niche yet lucrative segment is expected to continue contributing meaningfully to Porsche’s margins.

While the company’s portfolio features an increasing number of electric models, including the E-Macan and Taycan, Bernstein analysts expressed cautious optimism about the timing of these releases. 

The electric vehicle market in Europe is currently seeing softer demand, and the E-Macan's initial reception in some regions, such as China, has been mixed. 

Still, Porsche’s focus on personalisation and exclusivity offers a buffer against market fluctuations, giving the company an edge even as customer preferences shift.

Porsche’s market position has been volatile throughout 2024, with shares trading at €66.66, down from a 52-week high of €96.56. 

However, Bernstein maintains a price target of €82, suggesting a potential 23% upside. 

The brokerage’s "market-perform" rating reflects balanced expectations, taking into account both the automaker's competitive strengths and the broader challenges in the European electric vehicle sector.

Source: Investing.com