On Tuesday, Barclays (LON:BARC) made an adjustment to its price target on shares of Ferrari NV (NYSE:RACE:IM) (NYSE: RACE), reducing it from EUR500.00 to EUR485.00. Despite this change, the firm maintained its Overweight rating on the luxury carmaker's stock. Currently trading at $436.96, Ferrari shares have demonstrated remarkable strength with a 29.94% gain year-to-date. The adjustment follows a period of stabilization for Ferrari's shares after a significant drop during the third quarter.
The analyst from Barclays highlighted that while 2025 is expected to be a year of low volume growth for Ferrari, the company should benefit from a strong product mix. This is anticipated even though margin expansion may not occur in a linear fashion leading up to a major year in 2026, driven by the F80 model.
With an impressive gross profit margin of 49.8% and revenue growth of 11.18%, Ferrari has demonstrated strong operational execution. The year 2025 is also expected to be significant for Ferrari, with a focus on the launch of three to four new models and a strategic half-year Capital Markets Day (CMD), which will be crucial for outlining the company's path beyond 2026.
Ferrari's performance and strategy have led Barclays to view the automaker as a relative safe haven within the European automotive sector. The analyst's report suggests that Ferrari's approach can be characterized as "controlled growth," with a keen eye on the upcoming model launches and the second half CMD.
In refining their forecasts, Barclays has made slight adjustments to de-risk their 2025 estimates for Ferrari. Nevertheless, they still predict an increase of approximately 110 basis points in EBIT margin and around 15% absolute growth in EBIT for the company. These projections reflect a cautiously optimistic outlook for Ferrari's financial performance in the coming years.
In other recent news, Ferrari, the renowned Italian sports car manufacturer, has displayed impressive financial performance with strong revenue growth and profitability. The company's recent earnings report reveals a 7% year-over-year increase in revenues, reaching EUR 1.6 billion, and a substantial net profit of EUR 375 million. This growth is attributed to a healthy order intake for the new 12Cilindri coupe Spider and the anticipated F80 supercar.
Furthermore, Ferrari has announced a multi-year agreement to supply Andretti Formula Racing LLC with power units and gearboxes for a potential entry into the 2026 FIA Formula One World Championship. This strategic move underscores Ferrari's commitment to Formula One and its willingness to support new teams entering the sport.
The company has also demonstrated its commitment to sustainability with the early closure of its gas-powered generation plant, contributing to its carbon neutrality goals. Looking ahead, Ferrari plans to start deliveries of the F80 supercar in Q4 2025 and aims to achieve a 60% reduction in CO2 emissions by 2030.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.