Porsche: Coverage Initiation With EUR 90 Fair Value Estimate and a Narrow Moat Rating

We have initiated coverage of the shares of Porsche AG with a EUR 90 fair value estimate. Because of its intangible assets, including brand strength and intellectual property, Porsche has a narrow economic moat rating. The brand is synonymous with motorsports and highly engineered, fun to drive, sports cars. Brand strength has enabled a premium-to-luxury price range across Porsche's product portfolio, while intellectual property supports the brand image from racing-inspired engineering and well-executed product. Porsche is one of only a handful of automakers to which we assign an economic moat. Even so, the 2-star-rated shares currently trade at a 27% premium to our fair value.