Analyst Estimates: Here’s What Brokers Think Of Ferrari N.V. (BIT:RACE) After Its Third-Quarter Report

It’s been a good week for Ferrari N.V. (BIT:RACE) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.6% to €377. The result was positive overall – although revenues of €1.9b were in line with what the analysts predicted, Ferrari surprised by delivering a statutory profit of €2.44 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from Ferrari’s 21 analysts is for revenues of €8.27b in 2027. This would reflect a notable 10% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 26% to €11.07. In the lead-up to this report, the analysts had been modelling revenues of €8.27b and earnings per share (EPS) of €11.04 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

View our latest analysis for Ferrari

There were no changes to revenue or earnings estimates or the price target of €393, suggesting that the company has met expectations in its recent result. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Ferrari, with the most bullish analyst valuing it at €435 and the most bearish at €330 per share. This is a very narrow spread of estimates, implying either that Ferrari is an easy company to value, or – more likely – the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Ferrari’s revenue growth is expected to slow, with the forecast 8.3% annualised growth rate until the end of 2027 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. Even after the forecast slowdown in growth, it seems obvious that Ferrari is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Ferrari going out to 2028, and you can see them free on our platform here.

You can also see whether Ferrari is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.