Lucid files for 1-for-10 reverse stock split requiring shareholder approval
On Monday, Citi reaffirmed its Sell stance on Ferrari NV (NYSE:RACE:IM) (NYSE: RACE) shares, maintaining a price target of EUR360.00. The luxury automaker, currently valued at $83 billion and trading at a P/E ratio of 52.75x, released its fourth-quarter 2024 results, prompting Citi to update its forecasts for unit sales, revenue, and EBIT, resulting in slight adjustments to its predicted earnings per share (EPS) for the fiscal years 2025-2026. Additionally, the firm introduced its EPS estimate for fiscal year 2027, while keeping its target price steady.
Citi’s analysis acknowledges Ferrari (BIT:RACE)’s enduring appeal to investors, who have granted the luxury automaker the highest valuation in its history, surpassing even the luxury sector. Ferrari’s limited exposure to the Chinese market has seemingly shielded its relative returns in fiscal year 2024, with revenue growing 11.83% in the last twelve months. The automaker’s success in maintaining profitability through product mix and allocation strategies has been noted as a strong point, contributing to its attractiveness among investors. According to InvestingPro, the company maintains a "GREAT" financial health score.
Ferrari’s consistent performance is attributed to the company benefiting from quality and momentum flows in the market. Citi points out that it is difficult to predict an end to this positive investor sentiment. However, the firm also cautions that Ferrari’s current valuation and relative valuation afford little margin for error, which justifies the Sell rating. InvestingPro analysis indicates the stock is currently overvalued, with additional insights available in the comprehensive Pro Research Report covering this premium automaker. The company has maintained dividend payments for 10 consecutive years, with a 55.61% dividend growth in the last twelve months.
In other recent news, Ferrari reported a strong earnings performance, with a fourth-quarter adjusted earnings per share (EPS) of EUR 2.14, a 32% increase from the previous year, surpassing the consensus estimate of EUR 1.82. The company’s net revenue rose 14% to EUR 1.74 billion, exceeding expectations by $80 million, driven by higher prices and a modest increase in shipments. CFRA revised its 12-month price target for Ferrari to $450, maintaining a Hold rating, following Ferrari’s earnings report. Meanwhile, Bernstein reaffirmed its Outperform rating with a $575 price target, citing Ferrari’s strategic focus on high-value models like the F80 supercar, which is expected to significantly boost revenue.
Barclays (LON:BARC) adjusted its price target for Ferrari to EUR 485 while maintaining an Overweight rating, highlighting the company’s strong product mix and anticipated EBIT growth in 2025. The firm noted that Ferrari is seen as a safe haven in the European automotive sector due to its controlled growth strategy and upcoming model launches. Bernstein analysts also emphasized Ferrari’s strong denial of claims about unsold F80 supercars, confirming all vehicles have been allocated to top customers. This underscores Ferrari’s exclusivity and high demand, with the F80’s market interest reflected by a listing price of €5.9 million on a German website.
Ferrari’s strategic plan for 2022-2026 emphasizes product mix over volume, with a robust order book extending into 2026. Analysts at Bernstein project Ferrari’s average revenue per unit to exceed €500,000 by 2027, supported by customer spending on car personalization. These developments highlight Ferrari’s continued focus on maintaining its luxury brand value and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.