Photo by MARCO BERTORELLO/AFP via Getty ImagesAFP via Getty ImagesFerrari (RACE) stock has fallen 19% during the past week, and is currently trading at $389.56. Our machine-driven multi-factor assessment suggests that it may be time to reduce exposure to RACE stock. We are primarily concerned current valuation and a price of $273 may not be out of reach. We believe there is not much to fear in RACE stock given its overall Strong operating performance and financial condition. But given its Very High valuatio ...

Core Insights - The company has set a revenue growth target of approximately 5% annually until 2030, which some analysts view as cautious [1] - There is a commitment to deliver on previous promises, indicating confidence in the luxury market despite potential challenges [2][3] - The company aims to maintain a balance between client satisfaction and investor expectations, emphasizing a long-term approach to cash management [5][6] Financial Performance - The company has projected €8 billion in free cash flow over the next five years, with €7 billion allocated for dividends and buybacks, although some analysts expressed disappointment with these figures [4] - Margins are expected to exceed 40%, with aspirations for higher margins on specific models [6] Product Strategy - The company plans to limit the number of supercar owners to no more than 5%, maintaining exclusivity as a key aspect of its business model [8] - The electric vehicle (EV) target has been revised down to 20% of the lineup by 2030, previously set at 40%, reflecting a strategic adjustment based on market conditions [12][14] - The company is increasing the number of internal combustion engine models, indicating a focus on traditional offerings alongside EVs [13] Market Positioning - The company acknowledges challenges in the Chinese market, where it aims to maintain a market share below 10% while adapting its offerings to better fit local preferences [21][22] - There is a recognition of the competitive landscape, with peers like Porsche and BMW losing market share in China, prompting a reevaluation of the company's strategy in that region [20]

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Core Viewpoint - The article discusses the ten large-cap stocks that performed the worst in the previous week, raising questions about their potential inclusion in investment portfolios [1] Group 1: Stock Performance - The focus is on identifying the ten large-cap stocks that had the lowest performance last week, indicating potential concerns for investors [1] - The article implies that these stocks may present investment risks, suggesting a need for careful evaluation by portfolio managers [1] Group 2: Investment Considerations - Investors are encouraged to assess whether these poorly performing stocks are part of their portfolios, highlighting the importance of active portfolio management [1] - The article serves as a reminder for investors to stay informed about market trends and stock performance to make informed investment decisions [1]

Core Viewpoint - Ferrari's stock experienced a significant drop of nearly 16% following the unveiling of its first full-electric model, raising questions about whether this presents a buying opportunity for investors [1][10]. Group 1: Electric Vehicle Strategy - Ferrari is set to invest 4.7 billion euros between 2026 and 2030 to electrify its lineup, with expectations that battery-electric vehicles (BEVs) will account for 20% of sales by the end of the decade [5]. - The company is already partially electrified, with approximately 50% of its vehicle shipments being hybrids [5]. - Competitors like Lamborghini and Porsche are delaying or scaling back their electric vehicle plans due to weak demand, positioning Ferrari uniquely in the market [4]. Group 2: Financial Projections - Ferrari's long-term financial guidance for 2030 fell short of analyst expectations, projecting earnings of 11.50 euros per share on revenue of 9 billion euros, compared to the 9.9 billion euros analysts anticipated [8]. - The company slightly raised its outlook for 2025, expecting a profit of 8.80 euros per share on revenue of 7.1 billion euros [8]. Group 3: Market Position and Brand Strength - Ferrari maintains a strong competitive advantage with high margins and a unique brand image that is difficult for competitors to replicate [10]. - The performance of the Elettrica, Ferrari's first full EV, will be crucial in determining the future success of its electric lineup and its ability to resonate with core enthusiasts [9].

This business proves that not all car makers are created equal.Putting money to work in the auto industry isn't a smooth ride. These types of companies are generally very capital intensive, register low growth and profits, and face cyclical demand. The auto market is very competitive. However, an opportunity exists to make money in this part of the economy. Here's one of the best automotive stocks to buy right now. Ferrari is a luxury brand masquerading as a car companyFerrari (RACE -3.08%) isn't your avera ...

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

I'm Chris Rouseer from Bloomberg Pursuits and I'm here in historic Newport, Rhode Island to attend the Audrean Concord Elegance. Why don't you come along with me. What is a Concord Elegance.It's a car show for rare and extremely wellpreserved automobiles from the last century and even earlier. The Audrey Concord takes place at the Breakers, the former summer home of the Vanderbilt family. Collectors bring their cars from all over and judges award prizes based on quality of restoration, historical accuracy, ...

Company Overview - Ferrari's stock has shown consistent growth since its listing in early 2016, outperforming peers in Europe, with analysts expressing strong bullish sentiment ahead of the Capital Markets Day [1][2] - The company is expected to unveil its electric vehicle (EV) model next year, generating optimism among analysts and investors [2][3] Earnings and Growth Projections - Analysts noted a conservative outlook from Ferrari regarding its earnings growth compared to previous projections made during the last Capital Markets Day, which did not meet market expectations [3] - The company is producing a limited number of vehicles annually (around 10,000 to 12,000), raising questions about its compliance with future regulations on combustion engines [6][7] Electric Vehicle Market Dynamics - The growth of EV sales in Europe has not reached anticipated levels, leading to skepticism about the EU's goal to phase out combustion cars by 2035 [5] - There is a growing belief that lower-volume manufacturers like Ferrari may receive leniency regarding combustion engine regulations, allowing them to adjust their product plans accordingly [7] Competitive Landscape - The German automaker Porsche is facing challenges in the Chinese market due to aggressive pricing strategies from domestic manufacturers, impacting its profitability [9][10] - The transition from combustion to electric vehicles is leading to a commodification of performance, which could undermine the premium pricing that German companies have traditionally enjoyed [10][11]

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RACE, TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether ...