BofA lowered the firm’s price target on Ferrari (RACE) to EUR 496 from EUR 548 and keeps a Buy rating on the shares. The firm, which believes that the company will provide strong five-year targets at its Capital Markets Day on October 9, expects a slight increase of FY25 guidance on sales and EBIT margin, along with a stronger increase on EPS and free cash flow forecasts. At the event, the firm also expects the unveiling of the Ferrari EV concept and explaining of the EV “value over volume” approach and a “decent” 2030 plan, with P&L targets “just” in line with consensus. The firm additionally expects the dividend pay-out ratio to be raised to 45% from 35% and contends that Ferrari “could even afford” greater than EUR 4B of share buybacks.
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