Citigroup gives Ferrari (RACE.US) a rare "sell" rating, saying it is now too "expensive"!

Citigroup has called for a halt in the rise of Ferrari (RACE.US) stock price. The bank's analyst Harald Hendrikse downgraded the company's rating from "neutral" to "sell" on Monday, stating that it is difficult to justify the high valuation of the stock. Currently, there are 12 analysts recommending to buy, 13 recommending to hold, and Hendrikse is one of only four analysts to give a "sell" rating on Ferrari. Ferrari's stock price has risen by 25% this year, continuing last year's 52% increase and hitting a new all-time high. Hendrikse believes that Ferrari's strong momentum has led to a market-to-sales ratio of 12 times and an expected price-to-earnings ratio of 57 times in 2024, which he considers to be somewhat exaggerated. Therefore, after recommending the stock since September last year, he has given a "sell" rating for the first time. However, Hendrikse still expresses confidence in the quality and long-term growth prospects of Ferrari, and admits that he may have been wrong in his timing of the recommendation. He wrote, "As the stock market is more focused on 'quality' stocks than ever before, Ferrari can easily go further."