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Ferrari Stock Decline Presents Buying Opportunity
Ferrari (NYSE: RACE) has seen its stock price drop by approximately 17% over the past month, despite reporting a strong third quarter and raising its 2025 guidance. The decline is attributed to lower-than-expected growth projections through 2030 rather than current operational issues.
Third Quarter Performance
In Q3, Ferrari shipped 3,401 units, resulting in a net revenue increase of 7.4% to €1.77 billion, and an operating profit (EBIT) of €503 million, reflecting a 7.6% gain. The operating margin stood at 28.4%, underscoring its pricing power. CEO Benedetto Vigna stated the company has a clear growth trajectory and is on the path to sustainable development.
Future Outlook
Ferrari plans to limit its electric vehicle lineup to about 20% by 2030, a reduction from earlier targets. The company has an order book sold out through 2027 ahead of the launch of its first fully electric model, the Elettrica, next year. Ferrari is currently engaged in a multiyear share buyback program amounting to approximately €2 billion, reflecting the company’s long-term confidence.
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