MARANELLO - Ferrari N.V. (NYSE/EXM: NYSE:RACE), the renowned Italian luxury sports car manufacturer, has announced the conclusion of its partnership with the banking giant Santander (BME:SAN). The collaboration, which will cease on December 31, 2024, has been integral to Ferrari's racing ventures, particularly in Formula 1 and the Le Mans Hypercar (LMH) program.
The partnership, initiated in January 2022, marked a renewal of ties that first spanned from 2010 to 2017, with Santander serving as a Premium Partner to Scuderia Ferrari. As the three-year contract reaches its end, both entities have reflected on the mutual benefits derived from their alliance.
Lorenzo Giorgetti, Chief Racing Revenue Officer at Ferrari, acknowledged Santander's contribution to the company's recent successes, stating, "As our successful partnership with Santander comes to its end, we would like to express our gratitude for their dedication and collaboration during our journey together." He emphasized the important role Santander played in supporting Ferrari's achievements over the past years.
On the other side, Juan Manuel Cendoya, global head of Communications, Corporate Marketing and Research at Santander and vice chair of Santander Spain, reciprocated the sentiment. He expressed gratitude towards Ferrari and highlighted the significance of sponsorships in engaging with clients and reinforcing Santander's brand. Cendoya assured that Santander would maintain its sponsorship strategy, working with various partners in the future.
The impending termination of this partnership marks a significant change in the sponsorship landscape for Ferrari, as it seeks new opportunities and collaborations in the competitive world of motorsports. The company has not yet announced any new partnerships to replace the Santander sponsorship.
This development is based on a press release statement from Ferrari N.V. and does not include any speculation on the potential impact of this termination on Ferrari's financials or market strategy. The focus remains on the factual aspect of the partnership's conclusion and the expressions of mutual appreciation between the two companies.
In other recent news, Ferrari N.V. reported a robust second quarter in 2024, with revenues surging to €1.7 billion, marking a 16% increase year-over-year, and net profits reaching €413 million. The company attributes this positive performance to an increase in customized orders and clear visibility for future sales. Meanwhile, Magna International (NYSE:MGA) Inc. reported a miss on its second-quarter results, with adjusted earnings of $1.35 per share falling short of the projected $1.44. The company's quarterly revenue also saw a slight dip to $10.96 billion, missing the estimated $11 billion mark.
In analyst news, Morgan Stanley (NYSE:MS) demonstrated confidence in Ferrari by raising the company's price target to $520 from the previous $400, maintaining an Overweight rating on the stock. The firm highlighted Ferrari's unique market position, including a higher percentage of repeat customers and a lower reliance on the Chinese market. Conversely, Barclays (LON:BARC) upgraded Ferrari's stock from Equalweight to Overweight and increased the price target to EUR450.00, citing the company's strong performance and a confident outlook for the coming years.
In other company developments, Ferrari plans to launch an electric vehicle by the fourth quarter of 2025, demonstrating its commitment to innovation and customer choice. On the other hand, Magna International Inc. anticipates a loss of around $700 million in sales following the cancellation of a vehicle program. These recent developments underscore the dynamic nature of the automotive industry and the strategies companies are employing to navigate it.
InvestingPro Insights
As Ferrari N.V. (RACE) prepares for a future without the Santander sponsorship, the company's financial health and market performance remain a focal point for investors. According to InvestingPro data, Ferrari boasts a robust market capitalization of $88.97 billion, underlining its significant presence in the luxury automotive sector. The company's P/E ratio stands at a high 58.12, suggesting a premium valuation by the market, which could be attributed to its strong brand and exclusive market niche.
InvestingPro Tips highlight that Ferrari has increased its dividend for three consecutive years, indicating a commitment to returning value to shareholders. Additionally, four analysts have revised their earnings estimates upwards for the upcoming period, reflecting a positive outlook on the company's financial performance. With a revenue growth of 15.28% over the last twelve months as of Q2 2024, Ferrari appears to be on a solid growth trajectory.
Investors looking to delve deeper into Ferrari's financial metrics and strategic insights can find a comprehensive array of additional tips on InvestingPro, with a total of 21 tips available for Ferrari, including analyses on valuation multiples, profitability, and stock performance. For those interested in exploring these insights, they can be accessed through the dedicated InvestingPro page for Ferrari at https://www.investing.com/pro/RACE.
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