Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Bernstein analysts maintained an Outperform rating on Ferrari (NYSE: BIT:RACE) shares with a steady price target of $575.00. The luxury car manufacturer, currently valued at $84.5 billion, impressed with a 30.3% operating margin and reported free cash flow that exceeded expectations for the first quarter of 2025. The company’s strong performance, reflected in its impressive 50.5% gross margin and 12.4% year-over-year revenue growth, is attributed to its effective pricing and mix strategy. According to InvestingPro analysis, Ferrari maintains a "GREAT" financial health score of 3.15 out of 5.
Ferrari’s current order book includes orders covering its entire production for 2026, a success partly credited to the 12Cilindri model launched a year earlier. Additionally, demand for Ferrari’s Purosangue model is so high that the order book extends beyond 2027. This robust order book is a significant factor in the company’s ability to maintain confidence in its financial outlook amid a period when other companies in the automotive and broader sectors are withdrawing their forecasts due to uncertainties related to US tariffs and potential global economic impacts. Based on InvestingPro’s Fair Value analysis, Ferrari’s stock appears to be trading above its intrinsic value, though the company’s strong fundamentals and order book support its premium valuation.
The company’s reassurance in its full-year 2025 guidance, which was initially provided in February at the 2024 results announcement, highlights its deep understanding of its client base and its exceptional control over its business operations. Unlike many of its competitors, Ferrari has a unique position in the market that allows for a greater degree of economic autonomy.
Ferrari’s stock responded favorably on the day of the announcement, outperforming both the luxury goods and automotive sectors, with the stock delivering a 12.5% return year-to-date. The company’s ability to sustain a strong order book and reiterate its annual guidance demonstrates a resilience and stability that is not commonly seen in the current economic climate. InvestingPro has identified 15 additional investment tips for Ferrari, including insights about its dividend history and debt management. Discover these valuable insights and access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Ferrari has been in the spotlight with several noteworthy developments. Ferrari’s first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassed consensus estimates, although they fell short of RBC Capital Markets’ expectations. The automaker continues to adhere to its 2025 financial guidance, with projections for EBITDA reaching at least €2.68 billion for the full year. In response to tariffs, Ferrari announced a policy update allowing for a maximum price increase of 10% on certain models imported to the United States. This move is part of the company’s strategy to mitigate the impact of tariffs on its financial performance. Analysts from RBC Capital and Bernstein have maintained their Outperform ratings, with price targets of $500 and $575, respectively, highlighting confidence in Ferrari’s strategy and market position. UBS adjusted its price target to $520, maintaining a Buy rating, while Kepler Cheuvreux upgraded Ferrari to Buy with a price target of EUR 470, citing the recent stock decline as a buying opportunity. These developments reflect a complex landscape for Ferrari as it navigates tariffs and market challenges while maintaining strong brand performance.
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