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On Thursday, Bernstein analysts led by Stephen Reitman confirmed their positive stance on Ferrari (BIT:RACE) (NYSE: NYSE:RACE) shares, maintaining an Outperform rating with a steady price target of $575.00. The stock, currently trading at $482.55, has shown impressive momentum with a 28.87% return over the past year. According to InvestingPro data, analyst targets for Ferrari range from $390.72 to $587.13, with multiple analysts recently revising their earnings expectations upward. The analysts project that Ferrari will reach an average revenue of over €500,000 per unit by 2027, which exceeds the consensus by 3%. They highlighted the potential impact of the forthcoming F80 supercar, which is expected to represent a mere 3% of shipments in 2026 but could contribute approximately 20% of the revenue for that year due to its substantial €3.6 million price. This ambitious target builds on Ferrari’s strong financial foundation, with current revenue of $6.9 billion and an impressive gross profit margin of 50.13%. For deeper insights into Ferrari’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and 15+ additional ProTips.
The team at Bernstein also delved into the revenue generated from car personalization, noting that while reported figures suggest personalization accounts for 20% of Cars and Spare Parts revenues, the actual average spend per car is closer to 30%, with many instances exceeding that figure. This insight into customer spending habits on customization options underscores Ferrari’s ability to generate significant additional revenue.
Furthermore, Bernstein has adjusted their valuation approach for Ferrari, now employing a target multiple methodology. By applying a 60x price-to-earnings (P/E) multiple to their estimated earnings per share (EPS) for 2025, they arrive at the $575 price target, which remains unchanged from their previous assessment. Currently, Ferrari trades at a P/E ratio of 54.79x and commands a market capitalization of $86.32 billion, reflecting its premium positioning in the luxury automotive sector. Based on InvestingPro’s Fair Value analysis, Ferrari appears to be trading above its intrinsic value, though the company maintains strong financial health with an overall score of "GREAT."
The analysts also anticipate that Ferrari will introduce several new models in the coming years, though specific details of these potential releases were not disclosed. The focus on Ferrari’s model cycle and the strategic importance of high-value models like the F80 supercar are key to understanding the luxury automaker’s revenue trajectory as forecasted by Bernstein.
Ferrari’s stock performance and investor sentiment will likely continue to be influenced by the company’s ability to innovate and maintain its exclusivity in the luxury automotive market, as well as its financial performance against analyst expectations.
In other recent news, Ferrari has been the subject of various analyst reports. CFRA analyst Garrett Nelson revised the 12-month price target for Ferrari shares, reducing it from $460.00 to $450.00, while maintaining a Hold rating. This follows Ferrari’s recent earnings report, which revealed a significant earnings beat for the fourth quarter.
On the other hand, Bernstein analysts, led by Stephen Reitman, confirmed their Outperform rating and $575.00 price target on Ferrari stock. The reaffirmation comes after Ferrari’s strong denial of claims that some of its F80 supercar production run remained unsold.
In another development, Barclays (LON:BARC) adjusted its price target on shares of Ferrari, reducing it from EUR500.00 to EUR485.00, but maintained its Overweight rating. The firm sees Ferrari as a relative safe haven within the European automotive sector and forecasts EBIT growth in 2025.
Finally, Ferrari has entered into a multi-year agreement to provide Andretti Formula Racing LLC with power units and gearboxes for their potential entry into the 2026 FIA Formula One World Championship. This agreement is contingent upon Andretti Formula Racing LLC receiving formal acceptance of their entry into the championship by the FIA. These are just some of the recent developments surrounding Ferrari.
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