Ferrari’s Market Position: Balancing Strong Margins with Potential Risks

Analyst Elizabelle Pang from DBS maintained a Hold rating on Ferrari (RACE – Research Report) and keeping the price target at €420.00.

Elizabelle Pang’s rating is based on a combination of factors influencing Ferrari’s current market position. The company’s strong brand equity and exclusivity contribute to its high margins, with Ferrari commanding some of the highest EBITDA margins in the industry due to its premium pricing and limited production capacity. Despite these strengths, there are concerns about potential margin risks from newly imposed US tariffs, which could impact earnings.
While Ferrari has reaffirmed its FY25 guidance and continues to show earnings resilience, the stock is trading at a high forward PE ratio, suggesting it may be overvalued at current levels. Positive catalysts such as the upcoming electric vehicle launch and ongoing share buyback program provide some support, but investors are advised to seek better entry points due to anticipated market volatility. Key risks include a potential slowdown in vehicle demand and challenges in executing its BEV transition strategy.

According to TipRanks, Pang is a 2-star analyst with an average return of 0.3% and a 49.45% success rate. Pang covers the Consumer Cyclical sector, focusing on stocks such as Tesla, General Motors, and Mercedes-Benz Group.