Ferrari Analyst Price Target Adjusted Down Amid Outlook Revision
Analysts have lowered Ferrari’s fair value estimate from $447.87 to $416.85. This adjustment is based on a slightly more conservative outlook on revenue growth and profit margins.
What's in the News
- The Board of Directors has authorized a buyback plan, approving a share repurchase program of up to €3.5 billion. (Company announcement)
- Ferrari revised its 2025 earnings guidance and now expects net revenues of at least €7.1 billion, up from previous guidance. (Company guidance)
- The company confirmed additional 2025 guidance, including greater confidence in a positive product and country mix, higher contributions from racing, and expanded lifestyle revenues. (Company guidance)
- Ferrari provided long-term guidance for 2030, projecting net revenues of approximately €9.0 billion and EBIT of at least €2.75 billion, driven by product mix and personalizations. (Company guidance)
- Ferrari plans to increase its dividend payout to 40% of adjusted net profit from 2025, targeting a cumulative dividend distribution of around €3.5 billion from 2027 to 2031. (Company announcement)
Valuation Changes
- Fair Value Estimate: Lowered from $447.87 to $416.85, reflecting a more cautious outlook.
- Discount Rate: Increased slightly from 15.27% to 15.34%, indicating a marginal rise in perceived risk.
- Revenue Growth: Revised downward from 7.77% to 6.70%, suggesting more moderate long-term growth expectations.
- Net Profit Margin: Adjusted down from 23.93% to 23.50%, pointing to slightly slimmer profit outlooks.
- Future P/E Ratio: Decreased from 57.28x to 56.02x, indicating a modest adjustment in valuation multiples.
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