Morgan Stanley downgrades Porsche and Fiat, upgrades Renault

Fiat Renault Porsche logos

Firm also believes industry will lose 72 bn euros over two years

By Zack Newmark
December 11, 2008 8:12 PM
Filed Under: Corporate/Financial, European, Fiat, Industry, Porsche, Renault

Morgan Stanley released new investment ratings for the European automotive sector earlier Thursday. The new ratings include lowered estimates of value for each company in the industry. This devaluing is based on the investment firm's model of a two-year-long declining economy.

Amongst the new ratings is the downgrading of Porsche to "underweight" from "overweight," meaning the firm believes Porsche will either not meet expectations, perform worse than other comparable companies, or both. Fiat was also downgraded to "underweight.

The whole industry is not made up of potential dogs, however. Renault was upgraded to "overweight" from "underweight," while auto safety system manufacturer Autoliv was upgraded to "overweight" from "equal-weight."

Morgan Stanley believes the European auto industry will lose €72 billion over the next 24 months, going from €30 billion cash-in-hand, to a net debt of €42 billion within two years. The investment company expects the sector to return to normal profit margins in 2012.

Source: marketwatch.com

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Comments

Penner

December 11, 2008 8:57 PM

Never trust a bankster!

alessandro

December 11, 2008 10:08 PM

Yeah, ecpecially not these cashiers who are able to keep some touch to reality when they see a Porsche.

ck314

December 11, 2008 10:23 PM

these static theory mongers probably believe a big portion of porsche's market (cayenne and upcoming compact cayenne) is going down the flush, but practice will prove them wrong as long as the new cayenne comes in time.. panamera might be look a bit suspicious under the current economic context but i'm sure it will be a success despite it all, while 911 and cayman are inborn winners

Motor_Yakuza

December 11, 2008 10:39 PM

Porsche-needs a new design language Fiat-are those things cars?? Renault- Nissan is puling it up

ck314

December 11, 2008 10:53 PM

The day Porsche gives up its 911 identity, it's gonna be their death sentence.

Motor_Yakuza

December 11, 2008 11:03 PM

Nope, a revolution is better then evolution, sometimes.

ck314

December 12, 2008 2:53 AM

sure, like ferrari, with no cohesion in design model after model, or simply like toyotas.. the genius thing about the 911 shape is that being timeless it could evolve endlessly without losing its dna, and that's like a royal title, many envy it but only a very few inherit it

Motor_Yakuza

December 12, 2008 3:18 AM

What's wrong with the Ferrari's design, or the Toyota's, umm yeah, I admit that actual design of Toyota is not on my taste to much right now, but at least they try to give something new to the people.Imagine if u had to eat the same food everyday of your life, u will get sick of it, that's Porsche.

ck314

December 12, 2008 6:32 PM

lol You obviously don't get the point: to a 911 fan like myself, it's not having the "same" food every day, but the food itself. And I'm not saying all Toyota's and Ferrari's are ugly, they just don't keep a brand design identity over time. On the other hand, Audi may do the opposite, where different models look perhaps too alike, especially the interior design, and that's probably what you mean. But Porsche is about iconic identity, not just some random theme applied over and over again.