DBS analyst Elizabelle Pang has maintained their neutral stance on RACE stock, giving a Hold rating on May 6.
Elizabelle Pang’s rating is based on Ferrari’s strong financial performance and brand resilience, which are balanced by potential risks. The company reported an impressive earnings beat in the first quarter of 2025, with adjusted diluted EPS surpassing expectations due to a richer product mix and strong demand for personalizations. Despite these positive results, Ferrari faces margin risks from newly imposed US tariffs, although these are somewhat mitigated by selective price hikes and a robust order book extending through 2026.
Additionally, while Ferrari’s forward-looking guidance remains strong, with anticipated growth in EPS and industrial free cash flow, the stock is currently trading at a high forward PE ratio. This valuation suggests that investors might find more attractive entry points in the future, especially given the potential volatility from tariff impacts. Positive developments such as the upcoming launch of electric vehicles and an ongoing share buyback program could support the stock price, but execution risks in Ferrari’s transition to electric vehicles and any slowdown in demand could pose challenges. Therefore, the Hold rating reflects a cautious stance, balancing the company’s strengths with the uncertainties ahead.
In another report released on May 6, Jefferies also maintained a Hold rating on the stock with a €420.00 price target.
Based on the recent corporate insider activity of 40 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.