Jefferies optimistic for Ferrari despite cautious target projections

In the world of speed and elegance, sports car manufacturer Ferrari advances with a replenishing coffers, and financial analysis firm Jefferies is impressed, even though the targets for the year 2024 remain below expectations to date. An order book bursting at the seams, promising constant demand for the next two years, gives analysts confidence. Consequently, analyst Philippe Houchois has raised the target price for Ferrari from 285 to 375 euros following the release of current data and the outlook of the luxury brand. While the target price experiences a significant increase, Jefferies maintains a "Hold" rating. A look into the company's future reveals that the financial objectives for 2024 may not meet the market's lofty ambitions. Yet this detail seems to be of lesser importance to investors. The Italian sports car manufacturer impresses with remarkable profitability, which is reflected, among other things, in rising profits. This development also pays off for shareholders, as Ferrari plans to distribute almost the entire free cash flow to its investors. In a market where the luster of the brand often correlates with the performance of the stock, the Ferrari myth persists. The continuity of strong financial results underscores the enduring charisma of a manufacturer that knows how to combine luxury and return on investment.