UBS analyst Patrick Hummel upgraded Porsche stock to buy from neutral and raised its price target to 60 euros from 40 euros, saying the German automaker’s turnaround is becoming visible after years of what he called half-hearted efficiency measures. Hummel wrote in a research note that wrong decisions around electric vehicles have been rectified and new top-end products with combustion and hybrid powertrains are lined up. Management is focusing on product quality, he said, and he expects restructuring to be announced with second-quarter results. UBS expects Porsche to return to a 13% operating profit margin by 2030. Shares rose 3% to 48.27 euros on Tuesday.
AlphaValue analyst Yi Zhong said in a research note that Lufthansa’s eight-day labor strike earlier this year is expected to add around 200 million euros in cost. The German airline’s 2025 pretax profit was broadly in line with expectations despite slightly weaker operating profit due to higher costs, Zhong said, but a higher tax rate reduced net profit more than expected. Forecasts for 2026 and 2027 have been lowered because of higher fuel costs, increased disruption from the Iran conflict, and the impact of the strike, she said. While strong ticket pricing and premium travel demand continue to support revenues, fuel prices are likely to remain elevated due to ongoing supply constraints, she added. Lufthansa shares traded 1% lower at 8.19 euros.
Deutsche Bank analysts said in a research note that Uber’s partnership with Nvidia addresses one of the biggest remaining bottlenecks for scaling autonomous-vehicle commercialization. The ride-hailing company does not want to become a self-driving vehicle manufacturer or software developer, the analysts said; it wants to handle logistics and day-to-day operations. Nvidia, they said, can serve as the standardized technology backbone for autonomous vehicles that Uber can utilize and monetize. That pairing can give carmakers and fleet owners confidence that their self-driving vehicles will see demand from day one, the analysts said.
Canada’s government announced a new loan program to help domestic air carriers cope with higher fuel costs stemming from the conflict in the Middle East. Finance Minister François-Philippe Champagne said Canadian airlines facing “significant financial pressures” from higher fuel prices could access up to C$150 million in financing to alleviate balance-sheet pressure. The move is the latest effort by Canada to soften the blow from higher energy costs; in April, the government waived vehicle-fuel taxes on a temporary basis through Labor Day.
Bell Potter analyst Chris Savage lowered dividend expectations for Australian car dealership Eagers Automotive through 2028 but kept a buy call on the stock, signaling the company could beat its forecasts for the first and second halves of this year. The firm now assumes a dividend of 74 Australian cents a share in 2026, down 7.5% from its prior forecast. Savage said the revision reflects a desire for “more clarity on the payout ratio policy going forward post the investment in CanadaOne and the balance between further M&A activity—particularly in Canada—and paying out a dividend.” Bell Potter expects Eagers’s dividend to be A$0.80 per share in fiscal 2027 and A$0.86 per share in fiscal 2028. The firm said its near-term forecasts may be too low because of continued strong BYD sales and a strong rebound in Toyota sales expected in the second half.
Bank of America Securities wrote that Porsche SE offers a basket of Volkswagen and Porsche AG at an attractive discount, with an attractive yield and dividend upside. Porsche SE shares are down 23% year-to-date, reflecting the decline in its core Volkswagen holding, in which it owns a 53.1% stake. The bank said Porsche SE is the cheapest auto stock in Europe, and its view on Volkswagen remains positive. BofA lowered its price objective on Porsche SE to 38 euros from 45 euros and kept a buy rating. The bank said it expects Porsche SE to continue paying a decent dividend despite planning around 200 million euros a year of debt reduction. “We think the dividend could have upside if VW sells assets and realizes book gains,” the bank wrote. Porsche SE shares rose 1.3% to 30.97 euros.
The Dow Jones Industrial Average stood at 50,786.01 on Tuesday, as the broader market absorbed the mixed signals from the transport and auto sectors.