Analyst Horst Schneider from Bank of America Securities reiterated a Buy rating on Ferrari and keeping the price target at €496.00.
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Horst Schneider has given his Buy rating due to a combination of factors that highlight Ferrari’s promising future prospects. The upcoming Capital Markets Day (CMD) is expected to be a pivotal event, with Ferrari set to unveil its strategic plans, including a robust 2030 plan featuring strong profit and loss targets and enhanced free cash flow generation. These targets include an EBIT margin of 31-33% and an EPS compound annual growth rate of 9-10%, alongside significant shareholder returns through dividends and share buybacks.
Additionally, the introduction of Ferrari’s first battery electric vehicle (BEV), the Elettrica, is anticipated to bolster the company’s growth trajectory. Despite some investor concerns about conservative revenue targets, particularly in BEV sales, Schneider believes that Ferrari’s focus on maintaining a confident EBIT margin and strong free cash flow will drive long-term value. Furthermore, the resilience in the residual values of Ferrari’s models, despite minor weaknesses in specific models like the SF90, supports the overall positive outlook for the company’s stock.
Schneider covers the Consumer Cyclical sector, focusing on stocks such as Stellantis, Ferrari, and Continental Aktiengesellschaft. According to TipRanks, Schneider has an average return of 4.5% and a 42.55% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a €485.00 price target.