![]() ![]() Ford and Mazda will provide towing and loaner vehicles for affected vehicle owners. If you own one of these vehicles, contact your dealer IMMEDIATELY. This is minor on an EPS basis, but we estimate a saving of less than €2.1 million per year, including interest expenses tax advantages).Ford and Mazda are advising some owners of MY 2006 Rangers and B-Series trucks not to drive. This also will save some interest expense. In this phase, it is convenient for the company to buy back part of the bond trading at a lower price than the issue price. ![]() Ferrari has available cash despite the €4.4 billion planned CAPEX investments and also considering the ongoing buyback. Ferrari is one of the best auto issuers in Europe, with a net leverage close to 0x with the highest margin per car (an average of €154k EBITDA per unit). This aims to manage upcoming interest repayments. The offer is made as part of an active managing solution to administer the company's financial liabilities. The outstanding nominal value is €650 million, but the company will buy back a maximum amount of €175 million. Ferrari decided to repay part of one of its bonds earlier than expected.Ferrari's CEO also emphasized that the plan is in line with 15 new models expected between this year and 2026, including Ferrari's first fully electric car in 2025 This allows us to look at the quarterly report for August 2nd with optimism. Meanwhile, with the last CEO comment, we understood that with the enormous success of the new models, from the XX series to the Purosangue, the backlog is now at 2026 (versus our previous estimate was set for 2025). This also applies to areas where the demand for luxury is increasing, such as South Korea, where the company has significantly delivered higher volumes. USA and China are two markets in which Ferrari is growing. Despite an ongoing economic slowdown, Ferrari's demand is waterproof, and the group does not foresee tensions on supply.The current consensus estimate on Fiscal Year 2023 free cash flow is $980 million, with Ferrari guidance at less than $900 million Overall, the combined benefit of the two new models could be around €288 million. And about €131 million for the SF90 XX Spider model. On an FCF basis, in our numbers, given clients' initial payment, we estimate the SF90 XX Stradale model will guarantee a benefit of around €160 million in terms of free cash flow already this year. With these new models, we remain confident that Ferrari will meet and exceed its 2026 goals, which foresee a turnover of €6.7 billion and an EBITDA of €2.5/2.7 billion with margins of 38-40%. This is derived from additional revenue of almost €900 million and significantly supports the group's price MIX and profitability over the next two years. Here at the Lab, we estimate a 2025 EBITDA growth generation of more than 3-5%. In both models, the price to the public is about 80% higher than the Stradale entry price and much higher than the Ferrari portfolio average. The entire production is already sold out. 799 units for the former model with deliveries expected from the 2024 Q2 and only 599 units of the Spider with deliveries from the 2024 Q4. The new SF90 XX Stradale has a base price of €770k, while the SF90 XX Spider starts at €850k. In particular, the new models are based on the SF90 Stradale. The two models represent the evolution of the XX program, aimed at a small group of customers who drive cars not approved for road use. Ferrari unveiled two new plug-in hybrid models in June-end, which will be produced in limited series.Therefore, we are applying changes in our internal valuation. The recent company's indication well supported our buy rating. Our buy rating was supported by multiple factors: a solid order book thanks to a supportive client waiting list, better product MIX development with a personalization offer to drive profitability, a lower WACC in our valuation methodology, a compelling valuation within the luxury segment, 15 new models expected between 20, and a solid FCF generation with a well-covered dividend yield. Since our initial buy rating nicely titled ' Ferrari To RACE Again,' the company delivered an outstanding performance, up by more than 63% (including the dividend already paid). Today, we are back to comment on Ferrari ( NYSE: RACE). ![]()
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