Ferrari (RACE) CapEx Fears are Overblown, RBC Capital Sees Updated Targets Soothing Fears

RBC Capital analyst Tom Narayan reiterated an Outperform rating and EUR 260.00 price target on Ferrari (NYSE: RACE) on the belief that CapEx fears are overblown. The company announced that it will explore e-fuels for the ICE vehicles it sells in 2030 and updated financial targets for 2026. Management now expects Net Revenues of ~€6.7B, Adj. EBITDA of €2.4-2.7B, Adj. EBIT of €1.8-2B, Adj. EPS of €7.20-7.80. Management is calling for cumulative FCF of €4.6-4.9B, which implies FCF of €1B+/ per year from 2023-26 (adjusted for €600M guided for 2022).

The analyst stated "Recently, some fears have been brewing in the market that with electrification capex could exceed €1B, but managements’ targets today are consistent with what they have been saying in the past (capex of €880M/year). Separately, we believe the current financial targets imply that the company will reach ~15K production by 2026, consistent with our thinking."

For an analyst ratings summary and ratings history on Ferrari click here. For more ratings news on Ferrari click here.

Shares of Ferrari closed at $176.87 yesterday.

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