Ferrari shares sink after 2030 targets disappoint

(Sharecast News) - Ferrari's share price fell sharply on Thursday after the Italian luxury sportscar maker underwhelmed with long-term profit growth guidance, despite the company raising current-year estimates and announcing plans to raise shareholder returns. At a capital markets day in Maranello, Ferrari said it was raising its guidance for adjusted EBITDA from €2.68bn to €2.72bn, up from the €2.56bn made last year.

The net revenue target was also lifted from €7.0bn to €7.1bn, marking a 4.5% increase on 2024.

However, the company's future outlook largely disappointed: Ferrari said it expects compound annual growth of around 5% in net revenues between now and 2030, reaching €9.0bn. Adjusted EBIT is expected to hit €2.75bn by 2030, implying a CAGR of 6% - well short of the 10% rate expected by analysts.

The outlook came alongside plans to launch four new cars per year between 2026 and 2030, by which time the product line-up will comprise 40% internet combustion engines, 40% hybrid and 20% electric.

The stock was down 13.6% at €361.50 by 1452 in Milan - the biggest one-day decline in nearly a decade.

The negative reaction came despite the firm increasing its dividend payout ratio to 40% of adjusted net profit starting this year, from 35% previously, and starting a new share buyback programme worth €3.5bn from next year.