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Investing.com - HSBC upgraded Ferrari NV (NYSE:RACE) from Hold to Buy and raised its price target to EUR470.00 from EUR413.00 ahead of the company’s upcoming strategy presentation.
The upgrade comes as Ferrari management prepares to outline its plans through 2030 early next week, with HSBC anticipating continued volume growth and increased personalization opportunities partly due to a new paint shop.
HSBC expects Ferrari to benefit from significant mix improvements over the next two years from the F80 and 296 Speciale models, projecting mid-single-digit revenue growth alongside efficiency gains from recent digitalization efforts and production ramp-up at the e-Factory.
The bank forecasts Ferrari’s EBIT margins will expand to 32% by 2027, supporting an 11% earnings CAGR through 2030, despite acknowledging previous pressure on hybrid Ferrari residual values that has recently stabilized.
HSBC noted that new models like the 849 Testarossa should maintain order momentum, potentially alleviating some pressure on residual values, and suggested Ferrari could address hybrid ownership costs through battery refurbishment rather than replacement.
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