Why I Bought the Dip in Ferrari Stock
After 's (NYSE: RACE) October Capital Markets Day, the stock cracked. Shares of the Italian luxury brand have fallen from levels above $500 in early October to below $400 more recently. For a stock that isn't typically very volatile, a drop like this in Ferrari stock is rare. Investors were spooked by the company's new 2030 targets, which implied slower growth than many had anticipated.
The irony is that the sell-off came just as Ferrari raised its 2025 guidance again and reaffirmed some of the best margins in the auto industry, with high-30s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and high-20s adjusted operating margins.
In my view, the gap between cautious long-term targets and still-excellent near-term performance created an opening, so I bought the dip.
Source Fool.com
Ferrari NV Stock
With 16 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
With a target price of 466 € there is a positive potential of 38.03% for Ferrari NV compared to the current price of 337.6 €.
