Ferrari (NYSE: RACE) is a luxury sports car maker in Maranello, Italy. It is considered one of the most popular Consumer Durables companies globally. Ferrari stock has a market cap of $57.82 billion as of October 10, 2023.
The consensus rating amongst analysts of Ferrari stock is buy. Many of them expect Ferrari stock to keep rising in the near term. The company will release its fiscal Q3 financial report on November 2, 2023. Historically, Ferrari stock has beaten earnings estimates and it could maintain this trend in the upcoming quarterly report.
Ferrari Previous Performance
The fiscal Q1 and Q2 reports show that the luxury sports car company has reported better than expected earnings. It has surpassed estimates by an average of 11.63% in the previous two quarters. In Q2, the company reported earnings of $1.99 per share versus the analysts’ estimate of $1.77 per share, which was 12.43% higher than expected. In Q1, analysts had predicted earnings per share of $1.57, but Ferrari delivered $1.74, which was a surprise of 10.83%.
Ferrari Stock Future Outlook
Due to the past earnings surprise, estimates for the upcoming quarter are higher. Analysts predict earnings per share of $1.64 in the upcoming November 2, 2023 report. It would mark a year-over-year increase of 32.26%. Many analysts are also predicting a revenue of $1.55 billion, a 23.41% rise from last year.
The full-year predictions estimate earnings of $7.01 per share and revenue of $6.28 billion. It would represent a year-over-year rise of 30.78% and 17.1%, respectively.
Ferrari Stock Price Targets
NYSE: RACE has a price of $307.02 as of October 10, 2023, 09:53 GMT-4. Wall Street analysts have given RACE a price target of $319.17, with the highest prediction at $375.00 and the lowest forecast at $260.00. The price of RACE is predicted to reach $319.17 by September 1, 2024. That is a 3.96% potential upside from the current price.
RACE Future Looks Good
Ferrari is a unique brand with numerous high-end offerings. As a result, analysts believe the RACE stock has room for growth. The company has established itself with stable, long-term revenues, potential market growth, and expansion of its profit margin marked by robust returns on capital.
Even during periods of economic uncertainty, Ferrari has shown resilience due to its target market of high-net-worth individuals. There are clear signs of high demand for its products. For instance, it was recently forced to stop orders for its Purosangue SUV as the wait time has reached two years. Instead, the company is focused on existing customers for the first production run.
Should You Buy RACE?
If you are a new to the stock market, keep a close eye on any revisions to forecasts on RACE stock when considering RACE. These adjustments are usually a sign of shifting dynamics of short-term business performance. Consequently, optimistic estimates are usually a good sign of the business outlook.
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