Michael Binetti, an analyst from Evercore ISI, reiterated the Buy rating on Ferrari (RACE – Research Report). The associated price target remains the same with $565.00.
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Michael Binetti has given his Buy rating due to a combination of factors influencing Ferrari’s strategic direction. One of the main reasons is the shifting demand for luxury electric vehicles (EVs), which has seen a decline in recent months. This change in market dynamics, along with evolving global political landscapes, has impacted Ferrari’s initial commitment to a full EV lineup.
Additionally, Ferrari has consistently emphasized its strategy of flexibility, ensuring that its product offerings align with supercar consumer demand. Despite the initial plan to increase hybrid models to 60% of its fleet by 2022, Ferrari has successfully met its financial targets with a diversified product pipeline. The company’s investments in electrification, such as the E-Building, are designed to be adaptable, allowing Ferrari to pivot its strategy without significant financial risk. These factors contribute to Binetti’s confidence in Ferrari’s ability to navigate the changing automotive landscape effectively.
In another report released on June 16, Bank of America Securities also maintained a Buy rating on the stock with a $575.00 price target.
RACE’s price has also changed slightly for the past six months – from $432.360 to $460.650, which is a 6.54% increase.
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