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Investing.com - UBS lowered its price target on Ferrari (NYSE:RACE) to $529.00 from $579.00 on Thursday, while maintaining a Buy rating on the luxury automaker’s stock. According to InvestingPro data, Ferrari currently trades at a P/E ratio of 38x and maintains a perfect Piotroski Score of 9, indicating strong financial health.
The price target reduction follows a nearly 20% decline in Ferrari’s share price since the company’s Capital Markets Day, with UBS analyst Susy Tibaldi noting that investor concerns have shifted from Ferrari’s traditionally conservative guidance to questions about a potential fundamental change in the company’s equity story. InvestingPro analysis shows the stock’s RSI suggests oversold conditions, with the price currently trading near its 52-week low of $372.31.
UBS believes Ferrari has made the correct strategic decision to protect its long-term growth by maintaining its scarcity-driven approach and avoiding the pricing missteps that have affected other luxury brands in the current market environment.
The firm has cut its earnings per share estimates for Ferrari by approximately 8% following a transfer of coverage to a new analyst, but views the company’s targets as a floor for expectations with potential for positive surprises if global market conditions become less volatile.
UBS continues to view Ferrari as "one of the most compelling long-term growth stories in the sector," with its own estimates running about 5% above Ferrari’s EBITDA guidance for fiscal year 2030, though it acknowledges the stock may lack positive catalysts in the short term.
In other recent news, Ferrari has raised its financial guidance for 2025, projecting net revenues of at least €7.1 billion, surpassing previous expectations. The company also upgraded its adjusted EBITDA forecast to at least €2.72 billion, indicating it will exceed its 2026 profitability targets a year early. Additionally, Ferrari has set ambitious targets for 2030, including an adjusted EBITDA of €3.6 billion and plans to increase its dividend payout ratio. In response to these developments, HSBC has upgraded Ferrari’s stock to Buy, raising its price target to €470.00, citing a strong growth outlook through 2030. Meanwhile, Bernstein SocGen Group has lowered its price target for Ferrari to $475.00 from $554.00, maintaining an Outperform rating. This adjustment followed Ferrari’s Capital Markets Day, where the company revealed a 5% compound annual revenue growth target for 2024-2030, below the consensus expectation. Jefferies, on the other hand, has reiterated its Hold rating on Ferrari, maintaining a price target of EUR420.00. These updates reflect Ferrari’s evolving financial outlook and strategic planning through the coming years.
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