On Thursday, Bernstein adjusted its financial outlook for Ferrari NV (NYSE:RACE:IM) (NYSE: RACE), increasing the price target to €365 from the previous €340. The firm maintained its Market Perform rating on the luxury car manufacturer's stock.
"Our FY24 view remains largely unchanged. However, we do update our FY25 and FY26 vehicle model forecasts," said Bernstein analysts in a note.
Bernstein has factored in the addition of 100 V6 Hybrid Hypercar units to the sales projections. This update anticipates 150 units sold in fiscal year 2025 and 300 units in fiscal year 2026. This adjustment is in line with the expected start of production in October 2024, which is anticipated to provide sufficient time for increased deliveries in the subsequent year.
The analyst's decision to revise the price target is supported by media reports and production forecasts from IHS regarding the upcoming launch of the new vehicle model. The inclusion of the V6 Hybrid Hypercar in the sales mix is also expected to impact the volume estimates for other Ferrari models, prompting a reduction in those figures.
InvestingPro Insights
As Ferrari NV (RACE:IM) (NYSE: RACE) gears up for the production of its V6 Hybrid Hypercar, the company's financial metrics are essential for investors monitoring its progress. According to InvestingPro data, Ferrari boasts a robust market capitalization of $76.11 billion, reflecting its significant presence in the luxury automotive market. The company's P/E ratio stands at 55.92, indicating a high valuation relative to earnings, which aligns with the high earnings multiple mentioned in the InvestingPro Tips. This high valuation is further underscored by a Price/Book ratio of 22.71 as of the last twelve months ending Q4 2023.
Furthermore, an InvestingPro Tip highlights Ferrari's commitment to shareholder returns, as the company has raised its dividend for 3 consecutive years and maintained dividend payments for 9 consecutive years. This trend is reflected in the substantial dividend growth of 83.01% over the last twelve months as of Q4 2023. Additionally, the company's revenue saw a healthy increase, with a growth rate of 17.17% over the same period. The upcoming V6 Hybrid Hypercar's impact on sales and financial performance could further influence these figures, making Ferrari a compelling watch for investors.
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