Lucid files for 1-for-10 reverse stock split requiring shareholder approval
On Thursday, RBC Capital reiterated its positive stance on Ferrari NV (NYSE:RACE:IM) (NYSE: RACE), maintaining an Outperform rating and a price target of €500.00. The reaffirmation comes after the luxury carmaker’s shares experienced a 20% decline since February 20, primarily driven by concerns over potential tariffs. Currently trading at $437.51, the stock sits 14% below its 52-week high of $509.13. RBC Capital sees the dip as an opportune moment for investors, suggesting the downturn presents a "rare buying opportunity." According to InvestingPro analysis, Ferrari (BIT:RACE) currently appears overvalued based on its proprietary Fair Value model, with 12 additional exclusive ProTips available for subscribers.
According to RBC Capital, Ferrari has proactively responded to the tariff situation by announcing a policy update that would allow for up to a 10% increase in pricing on selected models shipped to the United States. This move is part of the company’s strategy to mitigate the impact of tariffs on its financial performance. The company’s strong financial position is evident in its impressive 50.13% gross profit margin and 11.83% revenue growth over the last twelve months. Furthermore, Ferrari’s management has reasserted its financial goals for 2025, acknowledging a possible 50 basis point risk to EBIT and EBITDA margins. RBC’s analysis indicates that these factors could result in a 1-2% impact on the company’s EBIT for the year 2025.
The fourth quarter of 2025 holds several key events that could serve as significant catalysts for Ferrari. Notably, the company is scheduled to host its Investor Day on October 9, which is anticipated to provide valuable insights into Ferrari’s future plans. Additionally, the quarter will witness the unveiling of Ferrari’s first-ever fully electric model and the commencement of deliveries for the F80 Supercar. These milestones are expected to contribute positively to the company’s prospects. InvestingPro’s comprehensive analysis reveals a "GOOD" overall Financial Health score, with particularly strong ratings in profitability and growth metrics. Discover detailed insights and expert analysis in Ferrari’s exclusive Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.
RBC Capital has decided to maintain its current estimates for Ferrari, along with the €500 price target, which implies a 30% upside from the stock’s current trading levels. The firm’s continued confidence in Ferrari reflects an expectation of robust performance and growth potential for the iconic automaker, despite near-term market challenges. The company’s strong fundamentals are supported by a healthy current ratio of 1.76 and projected EPS growth to $10.28 for FY2025.
In other recent news, Ferrari has been actively adjusting its strategies in response to new U.S. tariffs on European Union-manufactured cars. The company announced that while some models may see a price increase of up to 10%, orders for the 296, SF90, and Roma models will not be affected by these changes. Despite these adjustments, Ferrari has reaffirmed its ambitious financial targets for 2025, including an EBIT of at least €2.03 billion and a free cash flow of more than €1.2 billion. However, there is a potential risk of a 50 basis point reduction in profitability margin percentages.
Analysts have reacted to these developments with mixed views. UBS has reduced its price target for Ferrari to $520 while maintaining a Buy rating, citing foreign exchange fluctuations and the impact of tariffs as concerns. Bernstein analysts continue to rate Ferrari as Outperform with a $575 price target, emphasizing the company’s strategic pricing decisions. Meanwhile, Kepler Cheuvreux upgraded Ferrari from Hold to Buy, maintaining a price target of EUR 470, viewing the recent share price drop as a buying opportunity. Barclays (LON:BARC) also upgraded Ferrari to Overweight, setting a new price target of EUR 485, highlighting the company’s resilience amid industry challenges. These recent developments reflect Ferrari’s strategic maneuvers to navigate the evolving automotive landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.