17.04.2025

Ferrari Stock Remains an Attractive Buy Despite Price Declines

UBS Rating and Price Target

The renowned investment bank UBS has maintained its “Buy” rating on Ferrari shares despite recent price declines. This underscores ongoing confidence in Ferrari’s brand strength. The price target set by UBS is an impressive $520, indicating a positive price development in the future.

Market Situation and Resilience

  • US Tariffs: According to UBS, the impact of US tariffs on Ferrari remains minimal, due to strong demand and the company’s pricing power.
  • Demand and Supply: A consistently high interest in Ferrari models exceeds their availability, creating room for price increases.
  • Pricing Strategy: While prices for entry models are kept stable, increases are possible for other models to tap into new markets.

Financial Data and Forecasts

Ferrari has recorded steady growth rates in revenue and profit over recent years. For 2025, revenue is projected to be around €7.21 billion and net profit approximately €1.61 billion. The used car market also shows stability, underscoring the brand’s strength.

Current Price Development

The Ferrari stock has recently undergone a price correction of about 20% from its peak. Some market analysts consider this to be exaggerated. Currently, the stock is trading at around €379.95, which is below the 52-week high.

Overall, Ferrari continues to offer an attractive investment despite the recent market turbulence. The comprehensive pricing power and high demand for the company’s luxury vehicles point to a positive price development. Upcoming quarterly figures will be crucial for the future performance of the stock.