On Tuesday, Bernstein reaffirmed its Outperform rating on shares of Ferrari (BIT:RACE) (NYSE: NYSE:RACE), with a steady price target of $575.00. According to InvestingPro data, Ferrari currently trades at $436.96, with analyst targets ranging from $387.26 to $558.48. The luxury automaker's current market capitalization stands at $78.29 billion, though InvestingPro's Fair Value analysis suggests the stock may be trading above its intrinsic value.
The endorsement follows a briefing call hosted by Ferrari for sell-side analysts on Monday, focusing on the company's outlook for the upcoming year rather than the fourth quarter of 2024.
The luxury automaker indicated that product mix will be a significant growth driver in 2025, aligning with its strategic plan for 2022-2026, which anticipated a larger contribution from volume in the earlier phase. This strategy appears to be working, as InvestingPro data shows Ferrari achieving an impressive 11.18% revenue growth in the last twelve months, with a robust gross profit margin of 49.8%.
Ferrari's anticipation of no unexpected developments in its fourth-quarter results, which are to be disclosed in February 2025, suggests confidence in its performance. The company's order book, which extends well into 2026, was highlighted as evidence of its strong market position and visibility. This forward-looking assurance underscores Ferrari's emphasis on mix over volume as a strategic approach to growth.
The analyst's outlook is based on Ferrari's strategic plan that anticipated a higher volume contribution initially. This shift towards a focus on mix aligns with the company's expectations of leveraging its brand and product exclusivity to drive profitability. Ferrari's ability to maintain a robust order book stretching into the future reinforces the analyst's positive rating.
The luxury car manufacturer's strategy reflects a deliberate effort to balance volume with a premium product mix. This approach is designed to enhance brand value and ensure sustained demand for its high-end vehicles. Ferrari's methodical plan, which includes a detailed roadmap through 2026, provides a clear framework for its anticipated financial and operational trajectory.
Investors and stakeholders in Ferrari can look forward to the official fourth-quarter results in February 2025 for a comprehensive overview of the company's financial health. Meanwhile, the strong order book and strategic focus on product mix over volume offer a positive outlook for Ferrari's performance in the years ahead.
With an InvestingPro Financial Health Score rated as "GREAT" and over 15 additional exclusive ProTips available, investors can access deeper insights into Ferrari's performance through InvestingPro's comprehensive research reports, which provide detailed analysis of the company's valuation, growth prospects, and financial health metrics.
In other recent news, Ferrari has delivered impressive financial performance with solid revenue growth and profitability. The company's earnings report reveals a 7% year-over-year increase in revenues, reaching EUR 1.6 billion, and a substantial net profit of EUR 375 million. This growth is attributed to a healthy order intake for the new 12Cilindri coupe Spider and the anticipated F80 supercar.
Barclays (LON:BARC) maintains an Overweight rating on Ferrari's stock, despite a slight adjustment to its price target. The firm predicts an increase of approximately 110 basis points in EBIT margin and around 15% absolute growth in EBIT for Ferrari by 2025. This projection reflects a cautiously optimistic outlook for Ferrari's financial performance in the coming years.
Furthermore, Ferrari has announced a multi-year agreement to supply Andretti Formula Racing LLC with power units and gearboxes for a potential entry into the 2026 FIA Formula One World Championship. This strategic move underscores Ferrari's commitment to Formula One and its willingness to support new teams entering the sport.
Lastly, the company has demonstrated its commitment to sustainability with the early closure of its gas-powered generation plant, contributing to its carbon neutrality goals. Looking ahead, Ferrari plans to start deliveries of the F80 supercar in Q4 2025 and aims to achieve a 60% reduction in CO2 emissions by 2030. These are recent developments that underline Ferrari's strategic focus and operational efficiency.
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