Ferrari, the electrical turnaround weighs on shares on the stock market

The investment bank Goldman Sachs advises the sale of the Maranello shares, which are experiencing a decline in Piazza Affari

Ferrari’s electric breakthrough, with a battery-powered model by 2025, weighs on the stock market. The shares of the Maranello house today show a strong decline due to the so-called downgrade at Goldman Sachs da buy a sell. The day after the debut in fashion, the shares of the horse in the second half of the session marked a decline of 3.1% on the Ftse Mib list in Milan. It must be said that other car brands also recorded declines, albeit significantly smaller.

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the reasons for the rejection

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Analysts from the US investment bank cite four reasons behind the downgrade of Ferrari by cutting the target price from 192 to 170 euros per share. In particular, Goldman Sachs expects that after the appointment of the new CEO Benedetto Vigna, from STMicroelctronics and with a technological background, “Ferrari will accelerate its transition to the technologies of the future. Although we consider this development to be positive for the future of Ferrari in the long term. , we believe it can lead to an increase in investments (we increase our investment forecasts for 2021-30 by about 5.6%, on average to 796 million euros per year from 754 million) “, the experts point out. They add that the recent rise in Ferrari’s share price has been largely driven by the positive evolution of consensus reviews (consensus forecast), or the average of the forecasts issued by financial analysts on the expected performance of the financial results and the trend of the listing of a company. “With the company postponing its 2022 target to 2023, and with the consensus already about 12% above the Ebit 2023 target, we see limited room for positive revisions of profits “, reads the note from the investment bank.

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the advantages for the automotive sector

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Goldman Sachs expects the auto industry to benefit from sequential manufacturing improvement globally over the next 12-18 months as a result of easing semiconductor shortages and improving end markets but do not see Ferrari among the beneficiaries. of this development. And finally, fourth and last point, the target price on Ferrari (revised downwards to 170 euros) appears less attractive than those of the sector average.

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first electricity by 2025

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In April, at the shareholders’ meeting, Ferrari chairman John Elkann announced that the brand “continues to implement its electrification strategy extremely rigorously. We are very excited about our first zero-emission Ferrari, which we have scheduled to present in 2025 “.

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extended the vaccine program in the company

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Meanwhile, on the health front, the company has extended its anti-Covid-19 vaccination program to the family members and cohabitants of its workers. Each Ferrari person can in fact invite a member of his or her family and affective circle to take part in the vaccination program hosted at the company. There are therefore more than 4,000 people who can join, on a voluntary basis and respecting their privacy. They will be welcomed – as early as Tuesday 15 June for the first dose and by the end of July for the second – at the Diagnostic Center in Fiorano.

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