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 ...

Core Viewpoint - Ferrari (RACE) has experienced a significant decline of 15% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal as analysts expect better earnings than previously predicted [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - RACE's current RSI reading is 24.58, suggesting that the heavy selling pressure may be exhausting itself, leading to a potential trend reversal [5] Group 2: Fundamental Analysis - Over the last 30 days, the consensus EPS estimate for RACE has increased by 6.1%, indicating a positive trend in earnings estimate revisions, which typically correlates with price appreciation [7] - RACE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8]

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]

Ferrari’s brand is built on growling gas engines. Can a supercar that hums still set pulses racing?@DanieleLepido explains why the automaker is gambling on its Elettrica EV https://t.co/ZBrlruNLVy https://t.co/Ntl8tycTNR ...

Core Viewpoint - Ferrari's shares experienced a significant decline in both European and U.S. markets following the release of disappointing earnings guidance, marking the company's worst trading day since its IPOs in respective markets [1][2]. Financial Performance - Ferrari's stock fell nearly 15% to just over $407 in the U.S. market, and over 14% in Milan, dropping about €60 to around €357.60, representing the largest single-day loss since its listing in January 2016 [1][2]. - The company projected revenue of €7.1 billion for the current year, an increase from previous forecasts of just over €7 billion, and expects revenue to reach around €9 billion by 2030, with adjusted earnings of at least €3.6 billion, up from just below €2.7 billion [2]. Analyst Insights - RBC Capital analyst Tom Narayan noted that Ferrari's earnings estimates for 2030 were conservative and fell below previous growth projections, indicating a potential downshift in earnings expectations [3]. - CFRA downgraded Ferrari's stock to a "sell" and reduced its price target from $475 to $350, citing concerns over slowing growth [4]. Management Commentary - Ferrari CEO Benedetto Vigna acknowledged that expectations for higher revenue were not met, emphasizing the importance of executing achievable goals [5]. Market Sentiment - Despite the negative outlook from some analysts, others, such as JPMorgan and Deutsche Bank, expressed confidence in Ferrari's long-term growth prospects, with Deutsche Bank upgrading the stock to a "buy" and raising its price target to €520 [5]. Strategic Shift - Ferrari announced a reduction in its electric vehicle production plans, now targeting a model lineup of 40% internal combustion engines, 40% hybrids, and 20% fully electric cars, down from earlier projections of 40% EV sales [6].

Welcome back to Market on Close. I'm Sam Bis live from the floor of the New York Stock Exchange. Shares of luxury automaker Ferrari are under heavy pressure today in reaction to announcements at its capital markets a day presentation.The company raised long-term financial targets but was still below consensus estimates. It also slashed its sales guidance on electric vehicles and shares have dropped to six month lows off the back of that. So it is time for overlooked stocks.I'm joined by George Sillis, senio ...

POPPI. DANI: IT DOESN'T HAVE SUGAR. LORD KNOWS WHAT ELSE IS IN IT.MATT: EXPECTATIONS, NUVEEN'S SAIRA MALIK SAYS COMPANIES ARE LIKELY TO BEAT E. P. S.IN THE PRESENCE AGGREGATE DRIVEN BY TECH. I THINK WE'RE LOOKING FOR, SAIRA, ABOUT 7%, 8% IN THE THIRD QUARTER. WE'VE HAD DOUBLE-DIGIT EARNINGS GROWTH IN THE PREVIOUS COUPLE OF QUARTERS.DO YOU THINK WE'RE GOING TO GET THAT HIGH. I THINK THAT WE LIKELY WILL END THIS QUARTER WITH BEATING OUR SEASONS AGAIN. WHAT IS INTERESTING IS NORMALLY WHEN YOU GO INTO AN EARNIN ...

Core Insights - Ferrari's commitment to its foundational values of passion, innovation, and craftsmanship remains strong as it navigates the challenges of the current decade [1][2] Group 1: Company Overview - Ferrari's public debut on October 21, 2015, marked a significant moment, prompting global scrutiny on whether the company could maintain its core values while adhering to market discipline [2] - The company reflects on its history and evolution, emphasizing the importance of its spirit, which was established by Enzo Ferrari and continues to be upheld by its employees [1] Group 2: Future Outlook - The company expresses ambition and humility in facing upcoming transformations, reaffirming its strategic direction and commitment to its legacy [1] - The 75th anniversary in 2022 served as a pivotal moment for Ferrari to reinforce its vision for the future [1]

Core Viewpoint - Ferrari's shares experienced a significant decline in both European and U.S. markets following the release of disappointing earnings guidance, marking the company's worst trading day since its stock market debut [1][2]. Financial Performance - Ferrari's stock fell over 13% to approximately $414 on the New York Stock Exchange and more than 14% in Milan, dropping about €60 to around €357.60, representing the largest single-day loss since its listing in January 2016 [1][2]. - The company projected revenue of €7.1 billion for the current year, an increase from previous forecasts of just over €7 billion, and anticipates revenue of around €9 billion by 2030, with adjusted earnings expected to be at least €3.6 billion, up from just below €2.7 billion [2]. Analyst Insights - RBC Capital analyst Tom Narayan noted that Ferrari's earnings estimates for 2030 were conservative and fell short of the growth rate projected in 2022, indicating a potential downshift in earnings expectations [3]. - CFRA downgraded Ferrari's stock to a "sell" and reduced its price target from $475 to $350 due to concerns over slowing growth [4]. Management Commentary - Ferrari CEO Benedetto Vigna acknowledged that expectations for higher revenue were not met, emphasizing the importance of executing achievable goals [5]. Market Reactions - While some analysts expressed concerns, others remained optimistic about Ferrari's growth potential. JPMorgan analysts expressed confidence in the company's ability to meet long-term goals, citing strong demand [5]. - Deutsche Bank upgraded Ferrari's stock to a "buy" and raised its price target to €520, reflecting a more positive outlook [5]. Electric Vehicle Strategy - Ferrari announced a reduction in its electric vehicle production plans, now targeting a lineup of 40% internal combustion engines, 40% hybrids, and 20% fully electric cars, down from earlier projections of 40% EV sales [6]. - The company introduced its first electric vehicle, the "Elettrica," with deliveries expected to begin in late 2026 [6].

Core Insights - Ferrari's shares dropped 15% due to disappointment over its new long-term financial targets, resulting in a loss of 13.5 billion euros ($15.67 billion) in market capitalization [1][5][10] - The company set a revenue target of 9 billion euros ($10.4 billion) for 2030, which is an increase from the 7.1 billion euro forecast for this year, but fell short of market expectations [1][3][5] Financial Targets - The new revenue target of 9 billion euros for 2030 is seen as less ambitious than what analysts anticipated, leading to a significant decline in share price [1][5] - CEO Benedetto Vigna emphasized the importance of setting achievable targets, stating that the company cannot commit to figures that are unrealistic [3][5] Electric Vehicle Strategy - Ferrari unveiled its first electric vehicle, the Elettrica, showcasing a production-ready chassis but has not yet set a price [4][8] - The company's updated electrification strategy now aims for a lineup in 2030 consisting of 40% internal combustion engine (ICE) models, 40% hybrids, and 20% fully electric vehicles, a shift from the previous target of 40% EVs, 40% hybrids, and 20% ICE models [6][9][10] Model Launch Plans - Ferrari plans to launch an average of four new models per year between 2026 and 2030, maintaining a steady rhythm to engage its wealthy clientele [13] - The Elettrica is designed to complement Ferrari's traditional petrol and hybrid models, featuring 1,000 horsepower and a four-door configuration [14] Client Engagement and Lifestyle Strategy - The active client base has grown by approximately 20% since 2022, reaching 90,000, prompting plans for new "Tailor Made" centers in Tokyo and Los Angeles by 2027 [15] - Ferrari is expanding its lifestyle strategy with flagship stores planned in London and New York by 2026, aiming to offer a broader range of luxury goods and experiences [16]