(Boursier.com) — Too high, too fast? Citi recommends ‘selling’ the stock Ferrari while the car manufacturer sets records on the stock market. The bank explains that it has difficulty justifying the “rich valuation” of the stock which already shows a gain of 25% in 2024 after an increase of more than 50% last year. According to the broker cited by ‘Bloomberg’, Ferrari’s strength has led shares to trade at 12 times sales and 57 times estimated earnings for 2024, multiples it considers exaggerated. This is the first time he has ‘sold’ the stock since he initiated his coverage in September. The broker nevertheless says he still likes Ferrari’s quality and its long-term growth prospects and admits he could be wrong about the timing of his recommendation. With stock markets now more focused than ever on “quality” stocks, “Ferrari could easily go further.”
Of the 29 analysts following the manufacturer listed by ‘Bloomberg’, only 4 now recommend ‘selling’ the stock.
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