Ferrari (RACE) Cautious Outlook

2 months ago

"Ferrari stock is also a little bit in a downturn. Ferrari shares sink by most since 2016 on cautious forecast. They had this investor day and they gave 2030 guidance and it was not really some stellar guidance. Slow growth expected ahead with a little bit of growth in earnings per share and free cash flow. In the best case, if earnings come in at half a dollar, the market could see a P ratio drop to 10, pricing the stock at just five, which would be an absolute bargain."

The speaker discusses Ferrari's current struggles, pointing to weak guidance and a downturn in performance, while also hinting at a potential turnaround if earnings improve, setting up a scenario where the stock might become a bargain at a much lower valuation.

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