Should I Buy Ferrari (RACE)? Finance YouTuber Analysis

The analyst believes Ferrari has made a major top and is in a long-term correction. They are waiting for the price to drop further, ideally into the 230-240 EUR range, to initiate a long-term position. They anticipate significant upside potential (90-100%) from these lower levels, eventually surpassing its all-time high.

“Wir haben hier jetzt auch ein Long-Try hinterlegt, warten aber ab, ob wir den Einstieg bereits hier tätigen, wenn der Kurs noch mal in den Bereich zwischen 230, 240 kommen sollte. Wir stehen ja aktuell gerade bei 313 € die Aktie und würden dann auch spontaner noch mal einen Einstieg tätigen, wenn wir hier noch mal eine weiteres Tief ausbauen.”

The analyst believes Ferrari is a great company with strong growth in revenue, earnings, and free cash flow, and low debt. However, it is currently overpriced, trading at 22 times earnings, which is too high for the projected conservative growth. The market multiple could contract, leading to underperformance.

“if you're buying it free 13 today and you think it's going to be 287 in 10 years there's not much appreciation here based on this conservative forecast obviously the market thinks they're going to continue to grow faster than this that's not the point where the point is how much growth are you willing to pay for with your money if I'm willing to pay for this forecast and this stock to me is overpriced”