Core Viewpoint - Ferrari N.V. (NYSE:RACE) is recognized as a leading luxury car brand, but its stock has faced challenges, including a 5.9% decline year-to-date and a significant 21% drop in October due to a disappointing €9 billion revenue target for 2030 [1] Group 1: Analyst Recommendations - As of November 28th, out of 14 analyst recommendations for Ferrari N.V., eight were rated as Buy, three as Strong Buy, and three as Hold, with an average share price target of $484.92 [2] Group 2: Growth Expectations - Goldman Sachs initiated coverage on Ferrari N.V. with a Buy rating and set a share price target of $454 (€391), citing expectations of average selling price growth of 14% in 2026 and 4% in 2027, driven by high-end models like the 296 Versione Speciale and F80 hypercar [3] Group 3: Pricing Power - During the third-quarter earnings call, CEO Benedetto Vigna expressed confidence in maintaining pricing power, attributing it to ongoing innovation and product enhancement, which aims to delight customers and justify price increases [4][5]

Core Viewpoint - The recent sell-off in Ferrari's shares may be overdone, with questions surrounding the justification of the stock's sharp pullback in light of underwhelming long-term growth targets revealed in its five-year plan [1] Group 1: Financial Performance - In Q2 2025, Ferrari's revenue increased by 4.4% year-over-year to €1.79 billion, a slowdown from 13% growth in Q1 2025 and 11.8% for the full year 2024 [3] - Operating profit rose by 8.1% to €552 million, improving the operating margin to 30.9% from 29.9% a year ago [4] - The company reaffirmed its full-year revenue target of at least €7.1 billion and adjusted EBITDA of at least €2.72 billion, with an adjusted EBITDA margin of 38.3% or higher [5] Group 2: Growth Projections - For 2030, Ferrari's plan outlines revenue of about €9.0 billion and at least €3.6 billion of EBITDA, with a compound average annual growth rate of just 5%, a significant decrease from last year's 11.8% growth [6] - The upcoming F80 hypercar, limited to 799 units with a price tag of approximately $3.7 million, is expected to boost revenue and profitability, particularly in 2026 [8] Group 3: Market Sentiment and Valuation - Despite the stock's decline, shares are trading at a price-to-earnings ratio of about 38, indicating that the stock is not necessarily cheap [7] - Management indicated that personalization revenue growth may not be as strong in the coming years, suggesting a normalization in this revenue stream [9] - The current valuation does not provide a wide margin of safety if growth merely meets the new conservative targets [10] Group 4: Investment Considerations - Given the strong brand presence and upcoming catalysts, investors may consider buying the dip cautiously, potentially starting with a partial position and monitoring F80 deliveries and 2026 model introductions for further investment opportunities [11]