The stock markets are in fibrillation and, after the decline of around 6% during the month of April, they could now start another bullish phase. We believe that a good time point up to which prices could go are those of May 23rd, the expiration of our annual red setup. There are several shares on the Milanese stock exchange which, after a recent decline, may have reached a bottom point from which to raise not only in the short term. Among these we highlight Illimity Bank, Inwit, Piaggio, Stellamtis and STM. Now let’s see if Ferrari shares are still an opportunity after the rise in recent years and the recent drop of a few percentage points.
The UBS board
UBS analysts believe that the recent decline in Ferrari’s share price represents an attractive investment opportunity. Despite the modest increase in EBITDA in the first quarter compared to forecasts, UBS highlights organic sales growth and potential profit margin growth in 2024. The company confirmed that consumer purchasing trends remain robust, although it expects a decrease in deliveries of some models. While the share price is considered high, UBS believes the current valuation is justified given the strong business fundamentals and attractiveness of the brand. Ferrari reported higher-than-expected revenue in the first quarter and expects earnings per share and annual revenue below analysts’ estimates for the full year 2024.
What are the assessments of other analysts?
Accumulate average recommendation
Number of analysts 14
Last closing price 378 EUR
Average target price EUR 399.2
Difference / Average Target +5.60%
Are Ferrari shares still an opportunity? Study of the graph
From the lows recorded in 2016 at 25.98, the shares rose to 497.66 a few weeks ago. An increase of 1,815% in less than 8 years, equal to approximately 226% per year. An extraordinary movement, just think that the Ftse Mib rose by 270% in the same period of time, which is also an absolutely not to be despised rise.
The long-term trend is bullish and the Alligator Indicator averages on the annual time frame are set firmly upwards. The current prices, however, are far from them, just think that the language today passes in the 250 area. This, according to the dictates of the indicator, could mean that there is a bullish excess underway.
In recent weeks, prices have tested the trend line starting from the highs of 2020 and then 2021. At the moment, new short-term retracements would seem possible with the first objective being the 200-day moving average passing through the 336 area. New increases starting immediately with returns above 405.
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