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On Tuesday, Bernstein analysts, led by Stephen Reitman, maintained their Outperform rating on Ferrari (NYSE: BIT:RACE) shares with a consistent price target of $575.00. The reaffirmation comes after a sell-side briefing call with Ferrari ahead of its first-quarter 2025 earnings report, set to be released on May 7, 2025. The luxury automaker, currently valued at $76.54 billion, trades at a P/E ratio of 46.85, indicating premium valuation levels. According to InvestingPro analysis, Ferrari is currently trading above its Fair Value. During the call, the focus was on the impact of U.S. tariffs on the luxury automaker’s business.
Ferrari’s management expressed confidence during the briefing, noting that there would be no impact from tariffs on the first-quarter results for 2025. With strong revenue growth of 11.83% over the last twelve months and a healthy gross profit margin of 50.13%, the company reiterated the forecasted 50 basis points impact on the full year 2025 financials, as previously mentioned on March 27. Questions were raised about the 10% price hike on certain new models and how it reconciles with the stated tariff impact. Bernstein analysts highlighted that Ferrari’s strategy prioritizes customer relationships, choosing not to increase prices on previously ordered vehicles from the 296, SF90, and Roma model families.Discover more insights about Ferrari’s financial health and growth potential with InvestingPro, which offers 15+ additional exclusive tips and comprehensive analysis for informed investment decisions.
The company confirmed that price adjustments are included in contracts for Specials, Iconas, and Supercars, where advance deposits are taken. These adjustments are permitted to reflect changes in tariffs, suggesting an alignment with dealers who may also forego part of their bonuses during these exceptional times. Ferrari also indicated that the tariff impact might support residual values for collectors in the U.S., potentially sustaining demand.
Bernstein’s report detailed the approach Ferrari is taking to manage the tariff situation, emphasizing the company’s strategic pricing decisions amid market challenges. Ferrari’s stance on maintaining demand in the face of price changes was also confirmed, with no anticipated changes in customer demand following the adjustments. The analysis by Bernstein remains optimistic about Ferrari’s performance despite the current economic landscape shaped by tariffs.
In other recent news, Ferrari has announced adjustments to its pricing strategy in response to new U.S. tariffs on European-made cars, with certain models potentially seeing a price increase of up to 10%. Despite these changes, Ferrari has reaffirmed its financial targets for 2025, including an EBIT of at least €2.03 billion and adjusted EPS of at least €8.60. UBS analyst Susy Tibaldi has revised Ferrari’s stock price target to $520, maintaining a Buy rating, and adjusted earnings per share estimates for 2025-2027 downward by 3% due to foreign exchange fluctuations and tariffs.
Kepler Cheuvreux upgraded Ferrari’s stock rating from Hold to Buy, maintaining a price target of EUR 470, citing the recent share price decline as a buying opportunity. Barclays (LON:BARC) also upgraded Ferrari’s stock to Overweight with a new price target of EUR 485, highlighting Ferrari’s strategy adjustments and confirmation of financial goals as indicators of resilience. Bernstein reaffirmed its Outperform rating with a $575 price target, suggesting that Ferrari’s affluent customer base is well-positioned to absorb price increases due to tariffs.
These developments come amid a challenging environment for the automotive industry, with Ferrari’s strategic moves and strong brand positioning seen as key factors in navigating the current landscape. Analysts remain confident in Ferrari’s market position, citing its consistent performance and ability to manage external pressures. Investors are closely watching how Ferrari’s pricing adjustments and strategic initiatives will unfold in the face of evolving trade policies.
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