Ferrari: Bernstein still thinks stock is 'overvalued'

(CercleFinance.com) - Sanford C.
Bernstein maintains its "underperform" rating on Ferrari, wondering if new CEO Louis Camilleri will achieve Sergio Marchionne's EBITDA target of 2 billion euros by 2022.

According to the broker, the Italian carmaker's new product plan had not been finalised under Marchionne, meaning that specification, engineering, price and volume aims for the first SUV are still undecided.

However, much of the company's growth will need to come from the SUV, Bernstein warns.

This means that Camilleri will have to take product and brand risks to reach the 2 billion euro target, or that he will have to lower expectations again, it adds.

In short, while Bernstein says it admires Ferrari's brand, position and margins, it still believes that the stock is overvalued.

Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.