{"id":77512,"date":"2024-03-12T13:13:45","date_gmt":"2024-03-12T18:13:45","guid":{"rendered":"https:\/\/equitynewsreport.com\/ferrari-stock-downgraded-to-hold-price-target-lowered-to-425\/"},"modified":"2024-03-12T13:13:45","modified_gmt":"2024-03-12T18:13:45","slug":"ferrari-stock-downgraded-to-hold-price-target-lowered-to-425","status":"publish","type":"post","link":"https:\/\/equitynewsreport.com\/h\/ferrari-stock-downgraded-to-hold-price-target-lowered-to-425\/","title":{"rendered":"Ferrari stock downgraded to hold, price target lowered to $425"},"content":{"rendered":"<div readability=\"69\">\n<div id=\"imgCarousel\" class=\"imgCarousel\">\n<img decoding=\"async\" alt=\"Ferrari stock downgraded to hold, price target lowered to $425\" id=\"carouselImage\" src=\"https:\/\/i-invdn-com.investing.com\/news\/LYNXNPEB6M0LQ_L.jpg\"><br \/>\n<span class=\"text\">\u00a9 Reuters. <\/span><br \/>\n<i class=\"imgGrad\"><\/i>\n<\/div>\n<p>On Tuesday, CFRA announced a revision in its outlook for Ferrari (NYSE: NYSE:), downgrading the luxury automaker&#8217;s stock from Buy to Hold. The firm also adjusted the stock price target to $425 from the previous $465. The change in rating follows a significant appreciation in the company&#8217;s stock value, with shares experiencing a 24% increase year-to-date (YTD) after a 59% surge in 2023.<\/p>\n<p>CFRA&#8217;s new 12-month target represents a $40 increase, based on a projected 2025 price-to-earnings (P\/E) ratio of 44.8 times. This figure is slightly above Ferrari&#8217;s five-year average forward P\/E of 44.3 times. The firm&#8217;s adjusted earnings per share (EPS) estimates remain at EUR 7.70 for 2024 and EUR 8.70 for 2025.<\/p>\n<p>The downgrade was attributed to the stock&#8217;s valuation after its impressive performance. CFRA regards Ferrari as one of the top names in the automotive sector, citing the company&#8217;s industry-leading gross margins, which were around 50% in 2023, its unmatched pricing power, and a robust backlog driven by the global strength of its luxury brand. Despite these positives, the stock&#8217;s current valuation is believed to fully reflect these advantages.<\/p>\n<p>Ferrari has maintained an exceptional earnings record, with 14 consecutive quarters exceeding bottom-line expectations. This consistency is partly credited to the company&#8217;s tradition of providing conservative earnings guidance.<\/p>\n<p>Moreover, Ferrari&#8217;s recent buyback report revealed that the company has completed approximately 37% of its planned buyback program, which totals EUR 2 billion and is set to run through 2026. However, CFRA anticipates that EPS growth will decelerate in 2024.<\/p>\n<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&#038;C.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a9 Reuters. On Tuesday, CFRA announced a revision in its outlook for Ferrari (NYSE: NYSE:), downgrading the luxury automaker&#8217;s stock from Buy to Hold. The firm also adjusted the stock price target to $425 from the previous $465. The change in rating follows a significant appreciation in the company&#8217;s stock value, with shares experiencing a 24% increase year-to-date (YTD) after a 59% surge in 2023. CFRA&#8217;s new 12-month target represents a $40 increase, based on a projected 2025 price-to-earnings (P\/E) ratio of 44.8 times. This figure is slightly above Ferrari&#8217;s five-year average forward P\/E of 44.3 times. The firm&#8217;s adjusted [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":77513,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,50,48,3],"tags":[],"_links":{"self":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77512"}],"collection":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/comments?post=77512"}],"version-history":[{"count":0,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media\/77513"}],"wp:attachment":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media?parent=77512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/categories?post=77512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/tags?post=77512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}