Ferrari's stock continues to dip, according to financial analysts' observations
Ferrari's Product Roadmap and Stock Performance
Ferrari, the iconic Italian automaker, recently reported its financial results for the year, revealing a mixed bag of numbers that have sent shockwaves through the investment community.
The company's revenue increased by 4% to €1.79 billion, a testament to Ferrari's enduring appeal. However, the weaker-than-expected free cash flow and stagnant deliveries in key markets like China led to a negative reaction from investors. The stock lost more than 10% of its value on Thursday.
Despite the short-term setbacks, Ferrari remains optimistic about its future. The key to the stock's future performance will be the new models, particularly the Elettrica and those released in 2025.
In 2025, Ferrari is set to unveil a diverse lineup of new models. The Ferrari Amalfi, a modern mid-front-engined 2+ coupé with a 640 hp twin-turbo V8 engine, will represent Ferrari's evolution of the Grand Tourer. The Ferrari 296 Speciale, a lightweight special-series sports car focused on performance and reduced mass, will also make its UK public debut.
The new-generation Ferrari supercar, the F80, will debut at Goodwood with advanced innovations. Ferrari will also reveal the 12Cilindri, an iconic V12 engine masterpiece boasting 830 hp.
Ferrari's foray into electric supercars will be marked by the debut of the Elettrica, the brand's first fully electric vehicle, in October 2025. Deliveries are expected to begin in fall 2026, and the starting price is rumored to exceed €500,000 (~$568,000).
Ferrari plans to introduce 15 new models by 2026, signaling a diversified future lineup. The new models, particularly the Elettrica, are expected to be sold at a significant premium over their predecessors.
Analysts remain bullish about Ferrari's long-term prospects. Tom Narayan from RBC Capital Markets, Canada, believes the high stock losses are an overreaction. He has set a price target of $500 for Ferrari's stock. Steve Man of Bloomberg Intelligence agrees, stating that Ferrari is on track to achieve a targeted margin of 38 to 40 percent by 2026, a year earlier than planned.
Despite the challenges, Ferrari's sales in China remain stable, contrasting with significant declines experienced by other European automakers like Porsche. The company's net profit was €425 million, a 3% increase from the previous year, and Ebitda rose by 6% to €709 million.
Ferrari's order books are full until 2027, and the 296 Speciale and the Amalfi Coupé, the successor to the Roma, are among the new models to be released. The company's CEO, Benedetto Vigna, highlighted the full order books as a positive sign for the future.
In conclusion, while Ferrari's stock may have taken a hit in the short term, the company's long-term prospects remain strong. The new models, particularly the Elettrica, are seen as buying opportunities for investors. Ferrari's diversified product roadmap through 2025-2026, featuring a blend of high-performance combustion engine supercars and their inaugural electric model, signals an exciting future for the brand.
[1] Car and Driver [2] Motor Authority [3] Autocar [4] Bloomberg [5] CNET
- The new models, such as the Elettrica, Amalfi, 296 Speciale, and others upcoming by 2026, are expected to be a significant part of Ferrari's future strategy in the business and technology sectors, as they represent a diversified product roadmap and a priority in investing.
- Analysts, like Tom Narayan from RBC Capital Markets and Steve Man of Bloomberg Intelligence, foresee a bullish outlook for Ferrari's stock, citing the high-performance combustion engine supercars and the introduction of the electric model Elettrica as promising factors for long-term success in finance and the technology-driven automotive industry.
