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Investing.com -- In a note Thursday, Morgan Stanley revealed it has added Ferrari NV to its MAPS Global Equity list, replacing Fomento Económico Mexicano SAB (FMX), citing the Italian luxury carmaker’s resilience, brand strength, and growth profile.
“Ferrari NV (RACE) is a leading global luxury auto company that generated €6.7 billion in revenues in 2024 from 13.8k shipments,” Morgan Stanley analysts wrote.
The bank highlighted the company’s global footprint, with sales across EMEA (45%), the Americas (29%), China/Hong Kong/Taiwan (8%), and the rest of Asia-Pacific (17%).
Morgan Stanley explained that Ferrari benefits from “low price elasticity derived from scarcity value and brand equity,” noting that its affluent customer base helps shield demand from broader macroeconomic volatility.
“RACE has grown revenues ~10% on average since 2016 vs. ~2.5% (average Ford, GM, Honda),” the analysts wrote, calling the company’s demand profile “lower normalized demand volatility.”
Despite tariffs and global uncertainty, the bank pointed out that management recently upgraded its margin outlook, removing guidance for a 50 basis point headwind. The analysts said order books are “largely sold out” and demand intentions for new models remain strong.
The stock has traded in a $400 to $500 per share range year-to-date, at 39x consensus FY26 EPS, “in the middle of its three-year range (30x-50x).”
Morgan Stanley believes upcoming catalysts include the launch of Ferrari’s first fully electric vehicle and its analyst day on October 9.
Key risks, Morgan Stanley said, include demand weakness, production or supply chain disruptions, costs tied to the EV transition, tariffs, and broader macroeconomic pressures.
FMX was removed due to weakening fundamentals, particularly OXXO convenience store performance and margin pressures from consumer trade-down.