Ferrari stock receives a rare downgrade: find out more

Ferrari NV (BIT: RACE) is in the red this morning after a Citi analyst issued a bearish call on the luxury sportscar manufacturer based out of Maranello, Italy.

It’s hard to justify $RACE valuation

Harald Hendrikse downgraded the supercar maker today to “sell” as he finds it hard to justify its “rich valuation”. Ferrari stock has gained more than 55% over the past twelve months.

$RACE is currently trading at about 57 times forward earnings (2024) that the Citi analyst views as “stretched”, as per his research note on Monday.

Last month, the luxury sportscar manufacturer reported record results for its full financial year – and said it will perform even better in 2024.

Note that Ferrari shares do pay a dividend yield of less than 1.0% at writing as well.

Ferrari stock has downside to €329

Harald Hendrikse told clients in a research note today that Ferrari needs to sell 843K cars to justify its current valuation.

Assuming its run-rate at writing, that would take more than 60 years. The Citi analyst continues to see $RACE as a quality business but said:

Hendrikse raised his price objective on Ferrari stock to €329 on Monday but that still represents a more than 15% downside on its previous close.