Ferrari (RACE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Elizabelle Pang from DBS maintained a Buy rating on the stock and has a €485.00 price target.
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Elizabelle Pang’s rating is based on Ferrari’s consistently strong financial performance and strategic positioning within the luxury automotive market. Despite some challenges in the Chinese market and a slight moderation in quarter-over-quarter earnings, Ferrari’s earnings per share and margins for the third quarter of 2024 remained robust, aligning with expectations. The management has maintained its guidance for the fiscal year 2024, indicating confidence in the company’s ongoing performance.
Ferrari’s notable strengths include its strong brand equity, exclusivity, and the highest industry margins driven by its premium pricing strategy. The company’s impressive order book, which extends through 2026, ensures earnings visibility and is further supported by the anticipated launch of its electric model in late 2025. Additionally, the ongoing share buyback program is expected to bolster the stock’s value. These factors collectively contribute to the justification of Ferrari’s premium valuation relative to its peers, resulting in a Buy rating with a target price of EUR485.