Ferrari’s shares absolutely cratered this month, nosediving almost 15% on Wall Street and over 14% in Milan after the iconic carmaker’s long-haul profit predictions left investors cold. Not just a bad day—this was the worst single-session bloodbath since the company hit the NYSE in 2015. New York trading wrapped with shares barely clinging to $407, while over in Italy, they plunged a stomach-churning €60 to around €357.60. Historic? You bet.
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Here’s what set the firesale off: Execs dropped new numbers during their big Capital Markets shindig, whispering sweet nothings about hitting €7.1 billion in revenue by 2025 and dreaming of €9 billion five years later. Adjusted earnings? Maybe €3.6 billion—up from last year’s €2.7 billion, sure, but analysts called it lukewarm at best. Somewhere between “meh” and “yikes.”
RBC’s Tom Narayan didn’t mince words, calling Ferrari’s outlook “conservative to a fault,” far below even their gloomiest guesses. CFRA Research wasn’t playing nice either, slapping a “sell” rating on the stock and chopping their price target from $475 to $350. Growth? More like slowth.
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Ferrari CEO Benedetto Vigna defended the outlook, emphasizing execution over ambition. “People were expecting a higher top line,” he said. “But it is important that we execute what we say. We cannot commit on something we cannot achieve.”
Not everyone hit the panic button. JPMorgan and Deutsche Bank kept their pompoms out, pointing to Ferrari’s insane demand-supply mismatch. Deutsche actually upped their target to a gutsy €520, betting big on brand magic and tight strategy.
Oh, and about those electric dreams? Ferrari’s pumping the brakes—literally. They’re reshuffling the deck: 40% gas guzzlers, 40% hybrids, and a measly 20% pure electric. The much-hyped Elettrica? Don’t hold your breath till late 2026.
Bottom line? Ferrari’s playing it safe, but Wall Street wanted fireworks. And when you’re dealing with a stock this hot, sometimes reality bites.
Source
Shawn Henry