Ferrari: Bernstein still rates the shares 'underperform'.

(CercleFinance.com) - Sanford C.
Bernstein maintains its "underperform" rating on Ferrari shares, with a target price of 50 euros, after the luxury carmaker posted a "very solid" set of results on Thursday, but "modest unit growth" over the first quarter.

The broker cites a "very special business" with "limited growth", alongside F1 revenue risks and fundamentally overvalued shares.

"The risk of a big earnings slump are very low - Ferrari has a long order book and historically has held up better than a normal car maker in a recession," Bernstein wrote in a research note.

The broker recognises that there is no "negative catalyst" for the stock.

"Our simple problem is valuation - much as we love the product and its pricing power, we cannot find a way to justify the valuation," Bernstein said, adding that the stock is currently trading - just like Tesla - at a price to sales multiple of 4x.

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