Stocks for Ferrari once more plummet, as per analysts' opinions
In the world of luxury automobiles, Ferrari continues to make headlines with its ambitious plans for the future. The Italian supercar manufacturer, already sold out through 2027, is gearing up to launch several new models, including its first fully electric vehicle, the Ferrari Elettrica.
The Elettrica, set to be unveiled on October 9, 2025, with initial specifications announced at Ferrari’s Capital Markets Day, is expected to begin deliveries from October 2026. This electric marvel will feature a new four-door body style, more akin to a liftback or shooting brake than an SUV, and is reported to be designed partly by former Apple designer Jony Ive. With pricing anticipated to start around $500,000 USD and production targets of 700-800 units per year, the Elettrica is poised to redefine luxury electric vehicles.
Alongside the Elettrica, Ferrari’s 2025 lineup includes the F80 hybrid supercar, the 12Cilindri and Spider models, and the Purosangue SUV. In total, Ferrari aims to launch 15 new models between 2023 and 2026, covering hybrid and electric vehicles, supported by a $4.6 billion investment.
This transition towards electrification and expansion of their model range beyond traditional supercars marks a significant step for Ferrari. The company's internal roadmap includes plans for 15 new models by 2026.
The financials of the company are also looking strong. Ferrari's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 6% to €709 million. The company's revenue for the second quarter increased by 4% to €1.79 billion. Net profits for Ferrari increased by 3% year-on-year to €425 million.
Despite recent stock losses, analysts such as Tom Narayan of RBC Capital Markets in Canada and Stephen Reitman of Bernstein Research believe the market's reaction to Ferrari's results is exaggerated. Narayan even goes as far as to suggest that there is an opportunity to buy Ferrari's stock at lower levels, with a price target of $500.
One factor that may be contributing to this perceived overreaction is the potential impact of US tariffs on Ferrari's sales. Unlike BMW, Mercedes-Benz, or Porsche, Ferrari's sales are not significantly affected by these tariffs due to its low price elasticity.
Moreover, Ferrari's sales in China, a crucial market for luxury car manufacturers, are stable compared to other European automakers like Porsche, which have been facing significant quarterly declines.
The new models rolling out in 2025 will be sold at a significant premium over their predecessors, indicating a continued focus on high-end luxury. With a strong financial performance, an exciting lineup of new models, and a positive outlook for the future, Ferrari remains an excellent long-term investment for many investors.
CEO Benedetto Vigna reported full order books for Ferrari, indicating a strong demand for the company's products. Steve Man of Bloomberg Intelligence predicts that Ferrari will reach the upper end of its targeted 38-40% margin by 2026, a year earlier than planned.
In conclusion, despite recent stock pullbacks, the outlook for Ferrari remains positive. With its transition to electrification, expansion of its model range, and strong financial performance, Ferrari presents an attractive buying opportunity for investors seeking long-term growth.
- Amidst ambitious plans for electrification and model expansion, Ferrari's upcoming electric vehicle, the Ferrari Elettrica, priced at around $500,000 USD, can be considered a significant investment in the realm of luxury technology and sports.
- The financial health of Ferrari reflects its continued growth in the business sector, as evidenced by a 6% increase in EBITDA, a 4% rise in quarterly revenue, and a 3% year-on-year increase in net profits.
- The success of Ferrari's new high-end models, such as the F80 hybrid supercar, the 12Cilindri and Spider models, the Purosangue SUV, and the Elettrica, could generate substantial returns for investors, given the positive market outlook and growing demand for Ferrari's products.
