Ferrari Stock Crashes 15% - Buy Now Or Wait?

Core Insights - Ferrari's stock dropped nearly 15% due to disappointing management projections, but it is currently trading within a historical support range, which has previously led to significant rebounds averaging 22.8% [1] Group 1: Company Performance and Projections - Ferrari has reduced its 2030 electric vehicle (EV) production target from 40% to 20%, indicating a more conservative approach to electrification [5] - The company projected 2030 EBITDA of at least €3.6 billion, suggesting a slower growth rate than earlier forecasts, which has raised investor concerns [5] - The launch of Ferrari's first EV, the Elettrica, has been delayed until late 2026, with a second EV model still in early planning stages, creating uncertainty about future product offerings [5] - Revenue growth for Ferrari has been 12.4% over the last twelve months (LTM) and an average of 15.7% over the past three years [5] - The company has a free cash flow margin of approximately 18.2% and an operating margin of 28.9% LTM [5] - Ferrari's stock is currently trading at a price-to-earnings (PE) multiple of 46.0, which is higher compared to the S&P [5] Group 2: Market Context and Risks - Historical data shows that Ferrari's stock has experienced significant declines during market downturns, including a 38% drop during the inflation shock and a 28% decline during the Covid sell-off [4] - The stock's current trading levels have previously seen buying interest, with three significant rebounds in the past decade [1][3]