AI Value Ferrari N.V. (RACE.SW)

• Previous Close: CHF156.00
• AI Value: n/a
• Upside potential: n/a%

AI Investment Analysis of Ferrari N.V. (RACE.SW) Stock

Strategic Position

Ferrari N.V. is a globally recognized luxury sports car manufacturer headquartered in Maranello, Italy. The company operates in the ultra-premium automotive segment, producing high-performance vehicles that combine cutting-edge engineering with Italian craftsmanship. Ferrari's brand equity is among the strongest in the automotive industry, supported by its storied racing heritage (Scuderia Ferrari in Formula 1) and exclusivity-driven business model. The company maintains a deliberate production cap to preserve scarcity, with annual deliveries typically below 10,000 units. Its core revenue streams include vehicle sales (accounting for ~75% of revenue), sponsorship/commercial (F1-related), and brand-related activities (merchandising, licensing).

Financial Strengths

• Revenue Drivers: Vehicle sales (Portofino, SF90, 296 GTB), F1 sponsorship/commercial, brand licensing
• Profitability: Industry-leading margins (2023: ~27% EBIT margin, ~23% net margin), strong free cash flow generation, net cash position
• Partnerships: Long-term F1 partnerships (e.g., Shell, Santander), collaboration with Apple on Ferrari-branded content

Innovation

Hybrid/electric powertrain development (targeting 40% hybrid/EV portfolio by 2026), 50+ active patents in aerodynamics/combustion tech, Icona limited-edition program for bespoke vehicles

Key Risks

• Regulatory: EU emissions regulations requiring gradual electrification, potential F1 rule changes affecting competitive position
• Competitive: Intensifying EV competition from Tesla Roadster, Lotus Evija, and traditional rivals (Lamborghini, McLaren)
• Financial: Exposure to macroeconomic cycles in key markets (US/Europe/China), though mitigated by high-net-worth clientele
• Operational: Supply chain complexity for specialized components (e.g., carbon fiber), dependence on F1 performance for marketing appeal

Future Outlook

• Growth Strategies: Purosangue SUV expansion (higher-volume segment), Daytona SP3 limited edition, 2026 EV launch target
• Catalysts: Q4 2024 earnings (Feb 2025), potential F1 constructor championship wins, Purosangue full-year sales impact
• Long Term Opportunities: Asia-Pacific luxury growth (particularly China), customization revenue (Tailor Made program), potential F1 cost cap benefits

Investment Verdict

Ferrari represents a unique investment proposition as a luxury/auto hybrid with pricing power and margin resilience. Its vertically integrated production and brand moat mitigate typical auto sector risks, though valuation multiples reflect premium positioning. Near-term execution on electrification and Purosangue adoption are critical watchpoints. Regulatory pressures on combustion engines and F1 competitiveness pose manageable but non-zero risks.

Data Sources

Ferrari 2023 Annual Report, Q3 2024 Investor Presentation, Bloomberg Intelligence Auto Luxury Sector Report