Ferrari Stock Sees €380 Target and 24% Upside on Stable EPS Forecast
RACE•Morgan Stanley upgraded Ferrari to Overweight and raised its Milan-listed share price target by €50 to €380, implying 24% upside after a 26% decline over the past 12 months. The bank highlighted stable FY26-27 EPS forecasts with only 4% downward revisions, ~40% profit margins, and robust dealer demand despite mixed Luce EV feedback.
1. Analyst Upgrade and Price Target Increase
An equity research team raised Ferrari’s rating to Overweight and lifted its Milan-listed price target from €330 to €380, signaling an anticipated 24% rally in share value based on current consensus estimates and valuation metrics.
2. Stock De-rating vs EPS Revisions
Ferrari shares have fallen 26% in the last year, yet consensus earnings forecasts for fiscal 2026 and 2027 have been trimmed by only 4%, indicating the stock’s weakness stems primarily from multiple contraction rather than earnings deterioration.
3. Strong Profit Margins and Dealer Checks
The automaker maintains near-40% profit margins, the highest in the industry, and recent US and European dealer visits reveal sustained showroom traffic and demand for core supercar and special series models.
4. Luce Launch Concerns and Luxury Strategy
While the $640,000 all-electric Luce has provoked polarized reactions over its design and hybrid model resale values have softened, scarcity-driven pricing, limited allocations, and desirability of future collectibles underpin continued brand resilience.
