Core Viewpoint - Ferrari's stock has experienced significant declines, with a year-to-date drop of approximately 9% and a 34% decrease from its all-time high of $517.65 in July of the previous year [1][2]. Group 1: Stock Performance - The stock is down about 9% year to date and has decreased by 13% in 2025 [1]. - Shares have fallen 34% from the all-time high closing price of $517.65 in July of last year [1]. Group 2: Recent Challenges - Two major issues have impacted Ferrari's stock: the introduction of tariffs and an underwhelming growth plan presented at the 2025 Capital Market Day [4][5]. - The tariffs announced by President Trump in early 2025 raised concerns among investors, although Ferrari later clarified that the impact on its business was minimal [4]. - The growth plan revealed at the Capital Market Day projected an average annual revenue growth rate of only 5% from 2026 to 2030, a significant slowdown compared to previous years [6]. Group 3: Future Growth Potential - The launch of the F80 supercar could act as a catalyst for revenue and earnings growth in 2026 and possibly 2027 [2][7]. - Ferrari has already allocated vehicle orders into 2027 and plans to enhance its product mix to drive sales growth over the next five years [7]. - Despite recent slower growth, with a year-over-year revenue increase of just 7.4% in Q3 2025, the company maintains a strong order book extending into 2027 [8][9]. Group 4: Business Model Strategy - Ferrari's conservative growth outlook is part of its business model, which focuses on maintaining exclusivity through limited production and order allocation [9].

Core Viewpoint - Ferrari's stock experienced a significant decline following the October Capital Markets Day, dropping from above $500 to below $400, primarily due to new 2030 targets indicating slower growth than expected [1]. Group 1: Financial Guidance - Ferrari raised its 2025 guidance to at least 7.1 billion euros, with a long-term target of approximately 9 billion euros in net revenue by 2030, reflecting about 5% annualized revenue growth [4]. - The company expects earnings before interest (EBIT) to reach at least 2.75 billion euros by 2030, implying around 6% annual growth and an EBIT margin of at least 30% [4]. - Management plans to generate at least 3.6 billion euros of EBITDA and about 8 billion euros of industrial free cash flow from 2026 to 2030, with a commitment to return roughly 7 billion euros to shareholders through dividends and buybacks [5]. Group 2: Market Reaction and Performance - The stock's double-digit drop was triggered by investors' focus on slower growth targets, despite the company maintaining some of the best margins in the auto industry, with high-30s adjusted EBITDA margins and high-20s adjusted operating margins [2][6]. - The introduction of the new F80 supercar is expected to provide significant earnings support in the upcoming year [6]. Group 3: Management Strategy - Ferrari's conservative long-term targets may be viewed as a cautious approach, as the company has a history of outperforming its targets, being on track to exceed many of its 2026 profitability goals a year early [7].