June 14, 2021, 5:29 a.m. EDT

Ferrari downgraded from buy to sell at Goldman Sachs

Ferrari (MIL:IT:RACE) (NYS:RACE) shares traded lower in Milan as Goldman Sachs cut its rating on the sportscar maker to sell from buy, and its price target was lowered to $207 from $227. The company's announcement of a battery electric vehicle by 2025, and the appointment of a new chief executive with a tech background, may drive the need for incremental capital spending. "Uncertainty around future capex requirements also brings uncertainty around future earnings and cash flow," said analysts led by George Galliers. While the broader auto industry will benefit from improving production as chip shortages ease and improving end markets, the analysts say Ferrari won't be a notable beneficiary.

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