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On Thursday, Bernstein SocGen Group maintained its positive stance on Ferrari (NYSE:RACE) shares, reiterating an Outperform rating with a price target of $575.00. Currently trading at $420.02, the stock sits near its 52-week low of $399.27, despite showing strong financial health according to InvestingPro metrics. The affirmation comes despite new challenges posed by the 25% tariff on auto imports announced by President Donald Trump on Wednesday, March 26, 2025.
Ferrari, which handcrafts its luxury vehicles in Maranello, Italy, finds itself directly affected by the tariff hike. However, Bernstein analysts believe the brand’s affluent customer base in the U.S. is well-positioned to handle potential price increases. The company’s robust 50.13% gross profit margin and 11.83% revenue growth over the last twelve months support this view. The analysts point out that the majority of Ferrari’s American customers are collectors, many of whom own more than one vehicle from the iconic manufacturer. This detail, they argue, could mitigate the impact of new car price hikes as the value of existing Ferraris in collections may increase.
The potential bottom-line impacts of the tariff hike, which represents a significant jump from the current 2.5% to 25%, have been assessed by Bernstein. Despite the substantial increase, the firm’s analysts contend that the robust demand for Ferraris is unlikely to wane, even if double-digit price increases occur. With a market capitalization of $75.2 billion and comprehensive analysis available through InvestingPro’s detailed research reports, investors can access deeper insights into Ferrari’s financial resilience. They suggest that the proposed tax cuts for high earners and the possibility of deducting car interest payments from income tax, as promised by President Trump, would further support Ferrari’s clientele.
Bernstein’s analysis concludes that while the new tariffs present an unwelcome challenge, they do not fundamentally alter the investment narrative for Ferrari. The company’s strong brand and dedicated customer base are expected to continue driving demand, and as such, Bernstein reaffirms its $575 price target and Outperform rating on Ferrari stock. While trading at a relatively high P/E ratio of 45.29, InvestingPro analysis suggests the stock is currently overvalued compared to its Fair Value.
In other recent news, Ferrari reported significant financial achievements in its latest earnings report, showcasing a 32% increase in fourth-quarter adjusted earnings per share (EPS) to EUR 2.14, surpassing the consensus estimate of EUR 1.82. The luxury carmaker also saw its net revenue rise by 14% to EUR 1.74 billion, driven by higher prices and a slight increase in shipments. Despite the introduction of new U.S. auto tariffs, Ferrari remains committed to its financial targets for the year, indicating confidence in its market strategy. In the realm of analyst ratings, Citi has maintained its Sell rating on Ferrari with a price target of EUR 360.00, citing concerns over potential tariff impacts and high valuations. Conversely, Bernstein reaffirmed an Outperform rating with a $575.00 target, highlighting Ferrari’s revenue potential from high-value models like the forthcoming F80 supercar. CFRA also adjusted its price target for Ferrari to $450.00 while maintaining a Hold rating, noting Ferrari’s consistent earnings performance and premium valuation. These developments reflect a diverse range of analyst perspectives on Ferrari’s financial outlook and market position.
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