Ferrari has seen strong demand for its cars in recent years, but its shares have been under pressure as investors worry about its ability to maintain high profit margins amid intensifying competition. The company’s decision to issue new shares sent its stock tumbling 9 percent in early trading on Wednesday. Ferrari NV is a holding company, RACE stock forecast which engages in the design, engineering, production, and sale of luxury sports cars. The firm’s models include the F12Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, the LaFerrari Hybrid, LaFerrari, and the FF four-wheel drive. The company was founded by Enzo Anselmo Ferrari in 1939 and is headquartered in Maranello, Italy.
The majority of Ferrari’s ownership is comprised of public shareholders, including Piero Ferrari and Exor Ferrari stock N.V. Despite the fact that Ferrari and Alfa Romeo have a long history, neither company owns the other.
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It might seem generous, but Ferrari has the strength to keep up with these numbers. http://dotbig.com/markets/stocks/RACE/ I reach a price target of $260 which is a 23% upside from today’s price of $211.
After years of being a privately-held company, Ferrari will be going public in October of 2019. The IPO is expected to value Ferrari at around $10 billion. Ferrari has been one of the most profitable automakers in the world, with an operating profit https://dotbig.com/ margin of 17%. The company has been able to charge premium prices for its cars, and that is not expected to change after it goes public. The biggest risk to investing in Ferrari is that the company is heavily reliant on the global economy.
Ferrari, which is one of the world’s most iconic luxury brands, is one of only a few independent manufacturers. Ferraris have a significant stake in both the investing public and http://dotbig.com/markets/stocks/RACE/ Piero Ferrari – Enzo’s second son. Ferrari’s current share price divided by its per-share earnings over a 12-month period gives a "trailing price/earnings ratio" of roughly 38x.
How to buy Ferrari stock
Aside from being profitable, the company’s financial situation remains stable. Ferrari is a legendary Italian car company best known for its world-class hypercars and supercars. RACE Ferrari established a racing team in 1939 that would evolve into the modern Prancing Horse. In 1963, Ford attempted to acquire Ferrari, but the deal fell through.
- In fact, Ferrari’s cheapest new vehicle would still cost you over $200,000.
- Based on the fundamentals of accounting, my valuation estimates that shares of ICON should be valued at $125.80/share, implying a potential 35% downside risk.
- Some people may say that race is a good stock because it can be used to identify certain physical characteristics, which can be helpful in certain situations.
- The company’s shares have traded on the New York Stock Exchange since October 2016.
- Exor NV, a company controlled by the Agnelli family, one of Fiat’s original founders, owns Ferrari as one of its largest shareholders today.
Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per DotBig year. These returns cover a period from January 1, 1988 through September 12, 2022.
Ferrari NV (NYSE:RACE)
Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements. Ferrari’s social score of 17.33 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Ferrari is a leader in its sector https://dotbig.com/ when it comes to taking good care of its workforce and the communities it impacts. The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Ferrari’s future profitability. By accounting for growth, it could also help you if you’re comparing the share prices of multiple high-growth companies.
Ultra-rich fueling sales of luxury brands despite inflation and recession fears
Ford sold a total of 201.9 billion cars in 2021, making it the world’s largest vehicle manufacturer. While Tesla and Ford have received a lot of attention for their electric vehicles, Ferrari quietly sells high-quality supercars. According to its goals, the company intends to become carbon neutral by 2030. As a result, it intends to sell fully electric vehicles by 2025. Shares of the company have risen 31% in value since they peaked in September.
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Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service DotBig provider. When comparing offers or services, verify relevant information with the institution or provider’s site. Ferrari’s governance score puts it squarely in the 7th percentile of companies rated in the same sector.
The company’s average rating score is 2.62, and is based on 8 buy ratings, 5 hold ratings, and no sell ratings. Volkswagen and Ferrari stock Porsche Take a Huge Risk With a Big BetVW and Porsche are determined to very quickly catch up with Tesla on electric vehicles.