Ferrari’s Long-Term Growth Potential: Buy Rating Despite Short-Term Challenges

Bernstein analyst Stephen Reitman has maintained their bullish stance on RACE stock, giving a Buy rating today.

Stephen Reitman has given his Buy rating due to a combination of factors that highlight Ferrari’s potential for growth despite recent challenges. Following the company’s Capital Markets Day (CMD), Ferrari’s stock experienced a downturn due to underwhelming revenue and EBIT growth projections for 2024-2030. However, management has maintained that their guidance is both ambitious and prudent, with CEO Benedetto Vigna emphasizing that the 2030 adjusted EBIT margin guidance of 30% is merely a baseline for their ambitions.
Reitman acknowledges that Ferrari’s decision to maintain high levels of F80 supercar shipments into 2028 has tempered revenue and earnings growth expectations for 2026. Despite this, he remains optimistic about Ferrari’s long-term prospects, noting that the company’s unique business model and characteristics remain strong. While Ferrari’s stock has fluctuated, Reitman believes that the company will exceed its guidance, albeit with a need for evidence over the coming quarters. Consequently, he applies a 20% discount to Hermès’ 12-month forward P/E multiple to value Ferrari, resulting in a revised price target of $395.

In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a €350.00 price target.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RACE in relation to earlier this year.