Ferrari (RACE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Schwarz from Stifel Nicolaus maintained a Hold rating on the stock and has a €335.00 price target.
Daniel Schwarz has given his Hold rating due to a combination of factors related to Ferrari’s financial projections and market positioning. Despite Ferrari’s robust demand and the successful ramp-up of the Purosangue model, Ferrari’s management indicated that Q1 revenue and EBITDA consensus estimates might be slightly too optimistic. While the company’s volume is projected to remain steady year-over-year, with a positive contribution from the product mix, the overall consensus estimates for the years 2024 and 2025 are not expected to undergo significant changes following the Q1 report. This static outlook, paired with the stock’s high price-to-earnings ratio exceeding 50 times the 2024 earnings, could potentially weigh on the stock’s appeal to new investors.
Schwarz’s analysis also considers the normalization of used car prices, which are returning to more typical levels after previously inflated values—a factor that could impact residual values of Ferrari vehicles. Additionally, Ferrari’s steadfast approach to its electrification plans, with the development of its first electric model progressing as scheduled, suggests a clear strategic direction without any near-term changes. The company’s capital allocation strategy remains balanced between share buybacks and dividends, with no anticipated deviations. These collective insights lead Schwarz to maintain a Hold rating, signaling a neutral stance on Ferrari’s stock until there are clearer signs of either positive or negative deviations from the current expectations.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €375.00 price target.
RACE’s price has also changed dramatically for the past six months – from $296.590 to $419.590, which is a 41.47% increase.
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Ferrari (RACE) Company Description:
Italy-based Ferrari NV designs, manufactures and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hypercars; Fuori series, one-off, and track cars; and Icona cars. It also provides non-registered racing cars; and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. It participates in car racing such as Formula One.
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