Morgan Stanley Raises Ferrari Target to $380, Cuts WACC, Ups EPS
RACE•Morgan Stanley upgraded Ferrari to Overweight, raised its price target to $380 from $330 (24% upside) after shares rallied 3.9% and cited a 26% decline from multiple compression. The bank cut WACC to 7.5% from 8.1%, raised FY27–30 EPS by 2% and cited stabilising residuals on 296 GTB and SF90.
1. Morgan Stanley Upgrade and Price Target Move
Morgan Stanley upgraded Ferrari to Overweight and raised its price target to $380 from $330, implying a 24% upside, after the shares jumped 3.9% and a 26% year-over-year drop was attributed to multiple compression rather than business weakness.
2. Dealer Checks and Residual Values
U.S. and European dealer checks show the 296 GTB trading at its residual value floor and SF90 values stabilising after a reset. Mixed dealer feedback on the €550,000 Luce EV prompted plans for tight production control to limit brand dilution and preserve exclusivity.
3. Revised Financial Assumptions and UHNWI Tailwind
The bank lowered Ferrari’s weighted average cost of capital to 7.5% from 8.1% and raised FY27–30 EPS forecasts by about 2%. It also highlighted a structural tailwind from an anticipated global increase of 235,000 ultra-high-net-worth individuals by 2031, with the U.S. accounting for roughly 58%.
