Porsche’s stock plummets 30% as analysts slash price targets amid weak demand
Porsche AG, the luxury sports car maker based in Zuffenhausen, is under growing pressure from analysts. Weak sales in the stock market and strategic setbacks have triggered concerns about its financial health. The company’s stock has already fallen over 30% from its 52-week high.
Sales in the stock market, a key market, have slumped sharply. The Taycan and Macan Electric models saw a 26% drop, hitting profit margins. In response, Porsche will close 200 of its proprietary charging stations by March 1, 2026. The company has also shifted plans for its new M1 SUV, opting for plug-in hybrids instead of a fully electric model.
Analysts have reacted with caution. UBS lowered its price target to €42, labelling the stock as 'Neutral' and warning of tough conditions ahead. Barclays went further, cutting its target to €40 and giving an 'Underweight' rating, signalling expectations of further declines. Both firms highlighted operational struggles in the stock market and rising costs as major risks. The stock’s performance reflects these challenges. It is trading below critical trend levels, edging closer to its 52-week low. Without a recovery in stock market demand, the downward trend is likely to continue. So far this year, Porsche’s share price has already dropped by 7.48%. Regulatory hurdles and shrinking pricing power are adding to the pressure. Store closures and weak consumer interest in the stock market have further squeezed margins, leaving investors wary of the road ahead.
Porsche’s outlook remains uncertain as analysts downgrade expectations. The company’s reliance on the stock market and shifting market strategies have yet to stabilise its position. Without a turnaround in stock market demand, the stock’s decline may extend into 2026.
