UBS analyst Susy Tibaldi has increased her price target for Ferrari (RACE, Financial), moving it up from $520 to $560. She maintains a Buy rating on the stock, pointing to Ferrari's impressive first-quarter results as a solid beginning to the year. This update reflects the analyst's confidence in the company's ongoing performance and potential for growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Ferrari NV (RACE, Financial) is $492.15 with a high estimate of $576.44 and a low estimate of $409.58. The average target implies an upside of 3.80% from the current price of $474.14. More detailed estimate data can be found on the Ferrari NV (RACE) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Ferrari NV's (RACE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ferrari NV (RACE, Financial) in one year is $460.58, suggesting a downside of 2.86% from the current price of $474.14. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ferrari NV (RACE) Summary page.
RACE Key Business Developments
Release Date: May 06, 2025
- Total Revenue: Approximately EUR1.8 billion.
- EBITDA: Close to EUR700 million.
- Industrial Free Cash Flow: More than EUR600 million.
- Net Profit: EUR412 million.
- Diluted EPS: EUR2.3, up 17.9% versus the prior year.
- Deliveries: Increased by 33 units, driven by models like Ferrari Roma Spider and 296 GTS.
- EBITDA Margin: 38.7%.
- Net Industrial Debt: EUR49 million at the end of March.
- Personalization Revenue: Accounted for more than 19% of total revenues from cars and spare parts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ferrari NV (RACE, Financial) reported strong financial results for Q1 2025, with total revenues reaching approximately EUR 1.8 billion, driven by a focus on quality over quantity.
- The company achieved a robust EBITDA of close to EUR 700 million, highlighting strong profitability.
- Industrial free cash flow generation was impressive, exceeding EUR 600 million for the quarter.
- Ferrari NV (RACE) has a strong order book, with current models covering the whole of 2026, indicating sustained demand.
- The launch of new models, including the 296 Speciale coup and spiders, has been well-received, showcasing Ferrari's innovation in hybrid technology and design.
Negative Points
- The macroeconomic environment remains uncertain, with ongoing geopolitical tensions and market volatility posing potential risks.
- Ferrari NV (RACE) faces challenges from higher tariffs on EU cars imported into the US, which could impact profitability.
- The company anticipates a reduction in EBIT and EBITDA margins by 50 basis points due to these tariffs.
- There is a potential risk of foreign exchange rate fluctuations affecting financial performance, despite hedging strategies.
- The second half of 2025 is expected to be weaker than the first half, influenced by product mix changes and increased SG&A and R&D expenses.
