Wall Street Continues to Expect High Returns from Ferrari Stock



Analysts on Ferrari

According to Reuters, of the ten analysts covering Ferrari (RACE) stock, 50% have recommended “buy,” 30% have recommended “hold,” and 20% expect Ferrari stock to drop, recommending “sell.” Analysts’ 12-month target price for Ferrari stock is $138.09, reflecting an upside potential of 14.7% based on its market price of $120.43. Analysts’ target price has risen significantly over the last two months, from $132.21.

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Stock performance

Ferrari has been one of the most-talked-about stocks in the last couple of years. In 2016 and 2017, it outperformed legacy auto company stocks and the broader market, rising ~21% in 2016 and 80.3% in 2017. In comparison (IYK), Tesla (TSLA) rose ~45.7% in 2017, while General Motors (GM) and Ford (F) rose 17.7% and 3.0%, respectively. As of April 11, Ferrari stock had risen ~14.9% year-to-date, outperforming many peers.

Updates and 1Q18 earnings

In 4Q17, Ferarri’s adjusted earnings rose ~20.3% YoY (year-over-year) and its revenue rose 0.5% YoY. Its EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expanded to 30.7% from 30% in 4Q16, and with the 4Q17 release, management forecast global annual shipments of 9,000 units in 2018, compared with 8,398 in 2017.

RACE is scheduled to release its 1Q18 earnings on May 3, 2018. Continue to the next part, where we’ll look at analysts’ ratings for Harley-Davidson (HOG) stock in April 2018.

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