Ferrari shares slump 12% in biggest drop since 2016 listing

MILAN (Reuters) -Ferrari shares fell more than 12% on Thursday, setting the stock for its biggest one-day drop since its listing nine years ago, even as the luxury sports car maker maintained its guidance, although it said it would cut back prices in the U.S..

Citi analysts said that although Ferrari continued to deliver solid results, the focus had now shifted to whether the Milan- and New York-listed group can sustain its high profitability amid slowing growth in sales volumes and pricing.

"The focus now shifts to how far the EBIT margin can go in H2, with shipments and (Average Selling Prices) slowing," wrote Harald Hendrikse at Citi.

Ferrari said it will reduce the price compensation it introduced in April on some cars sold in the United States once tariffs on EU-made products effectively move to 15% from 27.5%.

(Reporting by Danilo Masoni; Editing by Kirsten Donovan)

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