Ferrari downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Ferrari (RACE) to Equal Weight from Overweight with a price target of $425, down from $520. The firm is positive on the company’s decision to limit volume growth up until 2030, saying it should further enhance the brand desirability and give Ferrari strong pricing power. However, the move will drive “relatively modest” growth in the near- to medium-term, the analyst tells investors in a research note. Morgan Stanley believes this coupled with investor concerns about the launch of the brand’s first electric vehicle will “cap” Ferrari’s valuation in the coming months.