Some investors, the Italian manufacturer of luxury sports cars Ferrari, may lose their appeal, while others see a jump in long-term sales as it navigates the wave of electric cars and adopts SUVs.
Investment researcher Jefferies was inspired by how Ferrari had remained at the forefront of the coronavirus, which devastated the effects of smaller deaths, but reduced its forecast of EBIT earnings by 2020 (earnings before interest and taxes) while maintaining its “lower performance”. score on stocks.
Ferrari’s earnings before interest, taxes, depreciation and amortization (EBITDA) were 60% at the time of the quarter to succeed at 124 million euros ($146 million). For the whole of 2020, Ferrari still expects an EBITDA of between 1,075 and 1.125 billion euros ($1.27 billion), with an earlier forecast of between 1.050 billion euros and 1.2 billion ($1.4 billion).
Ferrari, which is controlled through the Italian circle of relatives Agnelli through Exor, reported EBITDA earnings of 1.27 billion euros ($1.4 billion) in 2019.
“In many ways, the effects of 2020 don’t matter, just the magnitude of the uptick in 2021,” said Jefferies analyst Philippe Houchois.
Houchois said estimates for 2022 recommend returning to average rather than an expansion in stocks, while capital spending will remain higher for several years due to the transition to new technologies.
But investment bank Morgan Stanley sees sunny mountains.
“We believe that Ferrari is entering a phase of superior expansion and a technological transition that pushes investors beyond the limits of Array luxury goods… and it can grow super-luxury cake much faster (and more sustainable) than the market expects,” Morgan Stanley. analyst Adam Jonas said in a report.
Morgan Stanley expects Ferrari sales to double until 2030 to more than 20,000 and double until 2040 to 40,000. Morgan Stanley Ferrari is an “overweight” rating.
In 2019, Ferrari sold 10131 vehicles, 9.5% more than last year, driven by Sales by Portofino and 812 Superfast. It introduced its first plug-in hybrid, the SF90 Stradale. Ferrari’s new models in 2020 come with the Roma, which adapts to diversity as a new Berlinetta fixed-roof V8 engine: a front-engine coupe located under the F8Triyeto with central engine but over the Portofino convertible.
Morgan Stanley expects Ferrari to manufacture 1,500 Purosangue SUVs until 2025 and up 20 million euros ($236 million) or 7.5% to EBITDA. Electric cars will play a vital role, increasing from 0% to 3% of sales until 2025, but jumping to 20% in 2030 and 50% by 2040.
Electric cars will be the mark.
“We anticipate that the transfer to electric cars will be a turning point for the company, as it will require a short-term hardware investment, but we believe that this will pay off from the point of view of ROIC (return on invested capital) and that Ferrari will be able to earn higher margins, while attracting an even wider visitor base and bringing new generations to the brand” Jonas said.
Ferrari’s shares rose 1.76% on Wednesday to 161.80 euros. They peaked at 167.10 at the end of February before falling to about 116 in March, but have recovered ever since.
As a former European Reuters correspondent, I spent a few years writing about the industry. I’ll penetrate the hype and arrogance and find
As a former European automotive correspondent for Reuters, I spent a few years writing about the industry. I’m going to get to the hype and the bragging of the corporations and find out how those gigantic corporations are doing. I also like to drive your adorable machines and your maximum modesty. I’ll tell you if the generation works too.