0758 ET – Porsche’s new medium-term revenue targets will be driven chiefly by pricing and product mix, analysts at J.P. Morgan say. The bank says it welcomes the cash conversion targets, which should continue to support shareholder remuneration. At an investor event, Porsche outlined its medium-term strategy framework, centered on reinforcing its sports-car brand DNA while improving price and mix discipline, lowering capital intensity, and supporting structurally higher profitability and cash generation. Management reiterated its value over volume approach, pairing portfolio and pricing actions with a cost-savings program and a leaner, more agile operating model, analysts Jose M Asumendi and Piyush Singla write. The bank rates Porsche at overweight with a 50 euro price target on the stock. Shares fall 0.2% to 42.45 euros.
0645 ET – The momentum created by Forvia’s new management is underestimated by the market, Bank of America analyst Stephen Benhamou writes. The French automotive equipment supplier has better margins, fast de-leveraging and a stronger free cash flow that’s more visible from 2027, he says. BofA double-upgrades its rating on the stock to buy from underperform and raises its target price to 14 euros from 10.50 euros. Shares are up 9.25% at 10.37 euros.
0610 ET – Elevated crude tanker rates are adding to already high fuel prices worldwide, ING’s senior economist Rico Luman says. Transport costs for crude shipments from Ras Tanura in Saudi Arabia to Rotterdam surged above $35 a barrel in September, Luman says. Combined with strong refinery margins, these higher shipping costs could add more than $0.50 a liter to diesel prices at the pump. Although new tanker orders have increased, most vessels won’t be delivered until 2028-29, leaving the market exposed to prolonged capacity constraints.
2302 ET – Chinese electric-vehicle market has shifted from being a growth and profitability opportunity to serving primarily as a hub for R&D, stress testing and exports, says Natixis analysts. This has made maintaining a presence in China more challenging, yet still essential for surviving the EV transition, they say. A transfer of intellectual property and the development of partnerships appear to be the best long-term strategies for both legacy western automakers and Chinese EV makers seeking global scale.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing