In a report released today, Mike Tyndall from HSBC upgraded Ferrari to a Buy, with a price target of €470.00.
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Mike Tyndall has given his Buy rating due to a combination of factors that highlight Ferrari’s potential for growth and stability. The upcoming Capital Markets Day is expected to reveal Ferrari’s strategic plans until 2030, which include a focus on personalization and product mix, supported by new facilities like a paint shop. These initiatives are anticipated to drive double-digit earnings growth and improve EBIT margins to 32% by 2027.
Additionally, Ferrari’s unique market position, where demand consistently outstrips supply, provides a stable earnings outlook. Despite concerns about the residual values of hybrid models, recent data suggests stabilization, and new models like the 849 Testarossa are expected to sustain order momentum. The company’s relatively low exposure to the Chinese market and its ability to be selective in market engagements further bolster its valuation. Consequently, the target price has been raised to EUR470, reflecting a potential 14% upside, justifying the upgrade from Hold to Buy.
Tyndall covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Volkswagen, and Stellantis. According to TipRanks, Tyndall has an average return of -8.3% and a 41.67% success rate on recommended stocks.
In another report released on September 30, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a €466.00 price target.