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On Wednesday, UBS analysts raised the price target on Ferrari (NYSE: BIT:RACE) stock to $560 from $520 while maintaining a Buy rating. Currently trading at $475.23, Ferrari commands a market capitalization of $84.59 billion. The adjustment reflects confidence in the luxury carmaker’s brand and business model after the company reported robust results. According to InvestingPro data, analyst targets range from $430.51 to $622.57, with a consensus recommendation of 1.93 (Buy). Ferrari’s performance indicated consistent trends among its clientele, including new buyers, existing customers, and collectors.
The company has expressed caution regarding the remainder of the year due to volatile macroeconomic conditions. Management anticipates a softer performance compared to the first quarter, citing product mix and the impact of tariffs starting in the second quarter. Despite these challenges, Ferrari’s strong Q1 results have underpinned the positive outlook from UBS. InvestingPro analysis shows Ferrari maintains excellent financial health with a "GREAT" overall score of 3.15, supported by strong revenue growth of 12.36% and a healthy gross profit margin of 50.52%. While the company shows strong fundamentals, InvestingPro’s Fair Value analysis suggests the stock is currently overvalued.
During a recent earnings call, Ferrari’s management highlighted the planned reveal of the Ferrari Elettrica, an electric vehicle model. The unveiling is set to occur in three stages, beginning with the technology components at the Capital Markets Day (CMD) in October 2025. This will be followed by the presentation of the interiors in early 2026, leading up to the full reveal in Spring 2026. The company expects to start deliveries of the Elettrica in October 2026, aligning with plans shared during the 2022 CMD.
UBS analysts anticipate that the Ferrari Elettrica will serve as a significant catalyst for the stock, marking a new era for the automaker. The firm’s maintained Buy rating indicates a positive sentiment towards Ferrari’s future prospects and its strategic direction, particularly as it prepares to enter the electric vehicle market.
In other recent news, Ferrari has reported impressive financial results for the first quarter of 2025, with a 30.3% operating margin and free cash flow exceeding expectations. The company’s order book is robust, covering production through 2026, with high demand for models like the Purosangue extending orders beyond 2027. Analysts from Bernstein and RBC Capital have maintained their Outperform ratings, with Bernstein setting a price target of $575 and RBC Capital at €500. UBS has adjusted its target to $520, maintaining a Buy rating despite reducing earnings per share estimates due to foreign exchange and tariff impacts.
Ferrari’s management has expressed confidence in its 2025 guidance, with projected EBITDA of at least €2.68 billion, a figure that RBC and consensus estimates exceed. The company has announced a tariff policy update, allowing for up to a 10% price increase on certain models shipped to the U.S. This strategy aims to mitigate the impact of U.S. tariffs, which could result in a €40 million reduction in EBIT for 2025, according to RBC. Meanwhile, Ferrari plans to unveil its first fully electric model and commence deliveries of the F80 Supercar in the fourth quarter of 2025, events anticipated to positively influence its future prospects.
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