Ferrari’s stock took a nearly 5% hit in Milan’s stock exchange on Wednesday, following the release of its quarterly financial report. Despite meeting March-end financial expectations and reaffirming its annual targets, a short-term shift in the order book has sparked concerns among analysts at Stifel, who now believe the stock is overvalued.
During the earnings presentation, a specific remark caught the attention of Stifel analysts: “Order book normalization meets expectations.” This statement contrasted sharply with previous assessments from the last quarter of 2023, which described the order book as “strong across all current models and geographic areas, extending into 2025.” This apparent shift has raised eyebrows among investors, as order book dynamics are often seen as a critical indicator in the automotive industry’s financial health.
Particularly troubling for market watchers is the new Ferrari 12Cilindri, available in both coupe and roadster (Spider) versions. Unveiled with great fanfare at the latest Formula 1 Grand Prix in Miami, it has been touted as the premier sports car of 2024. However, availability is slated only for the final quarter of the year, limiting its impact on the current quarter’s orders. The positive effects of this launch are expected to be reflected in the order book by 2026, a delay that could be causing unease among investors.
The luxury car maker’s current situation reflects broader market trends, where even high-performing companies are scrutinized for future growth potential. Analysts are particularly keen on how well these companies can sustain their order books, as any signs of weakening could signal larger industry shifts. This sensitivity to the order book’s status underscores the market’s focus on not just current results but projected future performance.
As Ferrari navigates these challenges, investors and analysts alike will be watching closely to see how the company adjusts its strategies in response to these market dynamics. The balance between maintaining an exclusive brand image and meeting market expectations continues to be a tightrope that Ferrari must walk carefully.