Europe's Top Automotive Stock Currently Not Dominated by Volkswagen or BMW
Ferrari, the prestigious Italian sports car maker, has surged to record highs in February, outpacing its European rivals. On Tuesday, shares of Ferrari reached nearly 460 euros on the stock exchange, and further climbed to 467 euros on Thursday. In the past 12 months, the stock has risen by over a quarter, while the Stoxx 600 Auto & Parts sector index has declined by almost 12 percent.
Since early February, Ferrari's stock has been on an unstoppable rally, with two key factors driving its ascent: the publication of its financial figures for 2024 and the announcement that it will unveil its first electric car model this year.
From a longer-term perspective, Ferrari's stock has tripled in value since February 2020, giving it the highest market value among European luxury car manufacturers at 83 billion euros. Its closest competitors, Porsche and Mercedes-Benz, are valued between 50 and 55 billion euros.
It should be noted that 14 out of 29 analysts currently advise purchasing Ferrari stock. JPMorgan anticipates a 10 percent increase with a price target of 504 euros, while Bernstein sees potential for a further 20 percent.
Investors considering entering the market should exercise caution, as Ferrari enters a challenging market environment. Competitor Porsche has yet to achieve significant success with its electric models. October's Capital Markets Day promises to clarify Ferrari's future plans.
Ferrari's stock can be found in the Luxury Index of BÖRSE ONLINE.
A closer analysis reveals that Ferrari's valuation metrics are robust, with a Price-to-Earnings ratio (KGV) of 50.92, a Price-to-Sales ratio (KUV) of 11.27, a Price-to-Book ratio (KBV) of 21.67, and a Price-Earnings-to-Growth ratio (PEG) of 3.41. Its profit margin stands at 22.14%, and return on equity (ROE) is 46.38%. The dividend per share is €2.443, yielding about 0.6%.
Siemens and SAP stocks, as well as those of Rheinmetall, offer opportunities for investors following recent developments.
(Sources: dpa-AFX, UBS, Enrichment Data)
It is worth noting that the majority shareholder and management of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds positions in the financial instruments mentioned in the publication or related derivatives that could benefit from the price development resulting from the publication: Porsche AG.
A detailed comparison with BMW reveals that Ferrari's Price-to-Earnings (P/E) ratio is significantly higher than its competitor, but its profit margin, ROE, and analyst targets remain appealing. While dividend yields of other European auto stocks are greater, Ferrari's focus on growth may offer attractive long-term advantages.
In summary, Ferrari is one of the European auto sector’s top performers, favored for its growth prospects and premium brand. However, its high valuation might deter value investors. Analysts remain optimistic, with UBS maintaining a bullish "Buy" rating and a $560 price target, implying significant upside potential for investors focused on growth.
- In the realm of technology and finance, Ferrari's growth in the sports car industry is mirrored by analysts' predictions for its electric car model, as JPMorgan anticipates a 10% increase with a price target of 504 euros, and Bernstein sees potential for a further 20%.
- For investors considering diversifying into the luxury sector, Siemens, SAP stocks, and those of Rheinmetall offer potential opportunities following recent developments, while Ferrari, with its high valuation, might be a more attractive long-term investment for growth-focused individuals, as suggested by UBS's bullish "Buy" rating and a $560 price target.
