Hedgeye CEO Keith McCullough is adding Porsche Auto (POAHY) to the long side of Investing Ideas. Below is a brief note.
Our Industrials analyst Jay Van Sciver has one of the hottest hands on our stock picking team right now and he brought our Industrial Pro subscribers a great new idea in Porsche Auto (POAHY) this week.
Here's his teaser/intro, which I thought was quite good (think about what Tesla is "worth" relative to Porsche right now...):
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In a market where electric vehicles are a bubbly rage, shares of VW and Porsche have been oddly excluded. VW is betting hard on an EV future, from multiple product launches to charging networks to software. But VW shares have mostly lagged the market, as execution on margins and ESG-type initiatives hasn’t delivered. Value-unlock and sum-of-the-parts arguments, while economically reasonable, have failed to generate a commensurate share price in a skeptical market. Are shares of Porsche & VW likely to outperform as the company flexes its scale, distribution, and brand positions in an evolving competitive landscape? Will progress post-pandemic surprise investors, getting investors excited about VW’s green future and value creation opportunities? |
Buyem on sale,
KM
