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Porsche reclaims higher price tags and wants to join its peers

Last year in September, we analyzed Porsche's stock following its 2022 initial public offering. At the time, we noted Porsche's shares had great prospects in the long term and viewed a potential pullback in price as a great opportunity to buy this stock at relatively reasonable prices (judging by Porsche’s performance during its short life span on the exchange). When Porsche was still trading above €100, we eyed an ideal entry 10% below its market price. However, we also emphasized the need to leave some more capital aside to execute additional purchases once the opportunity arises. After patiently waiting a few months, we signaled another opportunity in late January 2024 when Porsche was trading near its all-time lows, looking relatively cheap to its peers like BMW and Mercedes-Benz. Fast forward to today, and shares of Porsche are trading up about 30% from that level and above the level we signaled in late September 2023 as well (above the area between €90 and €92). As far as our outlook goes, we remain bullish on Porsche in the long term and believe it has a chance to reclaim all-time highs and continue higher (though it might be a rocky ride).

Illustration 1.01

Illustration 1.01 shows the daily chart of Porsche stock and simple support/resistance levels derived from peaks and troughs.

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.