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On Friday, Barclays (LON:BARC) analyst Henning Cosman upgraded Ferrari NV (NYSE:RACE:IM) (NYSE: RACE) stock rating from Equalweight to Overweight, with a new price target of EUR 485.00. Currently trading at $426.82, Ferrari (BIT:RACE) shows mixed signals according to InvestingPro data, with a P/E ratio of 46.5x and analyst targets ranging from $404 to $607. The adjustment followed Ferrari’s recent commercial policy update and its confirmation of financial targets for 2025. Cosman highlighted Ferrari’s strong sign of confidence and its relative safe-haven status in the European automotive sector, supported by its beta of 0.58.
Ferrari’s update on Thursday afternoon indicated the company’s strategy to partially adjust prices in response to the potential 25% additional tariffs on US imports of foreign-made cars. The price increase will be capped at a maximum of 10%, excluding models imported before April 2, 2025, and orders of the 296, SF90, and Roma models, regardless of the import date.
Based on the current information, Ferrari has reaffirmed its ambitious financial goals for the year 2025. These targets include an EBIT of at least €2.03 billion, an adjusted EPS of at least €8.60, and a free cash flow of more than €1.2 billion. However, the company did acknowledge a potential risk of a 50 basis point reduction in EBIT/EBITDA percentage margins compared to the guidance levels of at least 29.0% and 38.3%, respectively.
The upgrade by Barclays comes after a 20% correction in Ferrari’s stock price, which Cosman views as an attractive entry point for investors. This perspective is underpinned by Ferrari’s recent guidance confirmation, which has been perceived as a robust indicator of the company’s resilience in the face of uncertainty within the European automotive industry.
Investors and market watchers will be closely monitoring Ferrari’s performance as it navigates the evolving automotive landscape and responds to external tariff pressures while striving to maintain its high-end market positioning and achieve its stated financial objectives.
In other recent news, Ferrari has announced plans to adjust prices for certain models in response to new U.S. import tariffs on European cars. Orders placed before April 2, 2025, for models like the Ferrari 296, SF90, and Roma will not see price changes, but other models may experience up to a 10% increase. Despite these adjustments, Ferrari remains committed to its 2025 financial targets, though it acknowledges a potential slight decrease in profitability margins. Meanwhile, Bernstein SocGen Group has reaffirmed its Outperform rating for Ferrari, setting a price target of $575.00, citing the ability of Ferrari’s affluent customer base to absorb price increases. In contrast, Citi has maintained a Sell rating with a price target of EUR360.00, expressing concerns over the impacts of tariffs and Ferrari’s high valuation. Citi’s analysis suggests potential risks to sales volumes and earnings per share growth due to the new tariffs. Ferrari’s revenue from the U.S. market, which accounts for a significant portion of its earnings, remains a focal point amidst these developments. Despite the challenges, Ferrari has demonstrated resilience, maintaining its financial goals and appealing to investors through strategic product and pricing strategies.
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