UBS Raises Ferrari Price Target to $497; €3.5B Buyback, Cost Cuts Underway
RACE•UBS maintained a Buy rating and lifted Ferrari’s price target to $497 from $483 while its shares traded at $374.66. Ferrari is introducing cheaper aluminum wiring and pursuing a €3.5 billion share buyback through 2030—€137.9 million repurchased—alongside hiring a BMW marketing chief.
1. UBS Rating and Price Target Lift
UBS maintained its Buy rating on Ferrari and increased the price target from $483 to $497 while shares traded around $374.66. This new target exceeds Ferrari’s 52-week range low of $312.51 and approaches the high of $519.10, reflecting confidence in future growth.
2. Aluminum Wiring Cost Savings
Ferrari is replacing traditional copper wiring with aluminum in upcoming models, aligning its production processes with larger automakers. This switch is expected to reduce material costs and improve margins without compromising performance or reliability in its luxury sports cars.
3. €3.5 Billion Share Buyback Program
The company launched a multi-year €3.5 billion share repurchase plan set to complete by 2030, having already spent €137.9 million and $35.0 million on early buybacks. This initiative aims to boost shareholder value by reducing outstanding shares and supporting the stock price.
4. Marketing Leadership Appointment
To strengthen its commercial outreach ahead of its first EV launch, Ferrari recruited a new marketing chief from BMW. This hire signals a strategic focus on expanding market presence and leveraging premium branding expertise in evolving automotive segments.
