UBS analyst Susy Tibaldi has lowered Ferrari’s stock price target to $520 from $584, while maintaining a “Buy” rating on the shares. This adjustment comes ahead of Ferrari’s first-quarter results, set for release on May 6. Tibaldi believes the results will further emphasize the strength of Ferrari’s brand and its business model, as demand for luxury vehicles continues to outpace supply despite challenging macroeconomic conditions.
According to InvestingPro, Ferrari’s stock is currently trading above its fair value, with analyst targets ranging from $405 to $609. Last week, Ferrari announced a price hike of up to 10% on select models in the U.S., a move aimed at counteracting the impact of a 25% auto tariff. While the increase is expected to have a minimal effect on Ferrari’s profits—possibly reducing margins by 50 basis points—it highlights the company’s strong pricing power. Tibaldi praised Ferrari’s ability to effectively price its products, addressing investor concerns and underscoring the company’s 50.13% gross profit margin and 11.83% revenue growth over the past year.
Despite these challenges, Tibaldi forecasts a strong start to the year for Ferrari, with the first quarter expected to be the most robust, unaffected by tariffs, and featuring the highest number of Daytona models. This outlook comes amid a tough environment for the luxury sector, but UBS remains confident in Ferrari’s consistent performance, supported by the brand’s focus on scarcity and customer relationships. The company’s financial health remains strong, reflected by a “GOOD” score from InvestingPro, a current ratio of 1.76, and a solid return on equity of 46%.
UBS has also revised its earnings per share (EPS) projections for 2025, 2026, and 2027 downward by 3%, citing foreign exchange fluctuations and the impact of tariffs as the primary causes. Despite this reduction, the “Buy” rating stays intact, as UBS continues to trust Ferrari’s strategic position. The company’s current P/E ratio is 46.85, with analysts forecasting an EPS of $9.86 for fiscal year 2025.
In related news, Ferrari has reaffirmed its 2025 financial targets, despite the new U.S. tariffs. The company plans to raise prices for certain models by up to 10%, but models like the 296, SF90, and Roma will remain unaffected. Analysts from Kepler Cheuvreux upgraded Ferrari’s stock from “Hold” to “Buy,” citing a recent drop in share price as a buying opportunity. Barclays also upgraded the stock to “Overweight,” setting a new price target of EUR 485.00 following Ferrari’s confirmation of its 2025 financial goals.
Ferrari aims for at least €2.03 billion in EBIT, an adjusted EPS of at least €8.60, and over €1.2 billion in free cash flow by 2025. However, the company has acknowledged the potential for slight reductions in its EBIT/EBITDA margin percentage due to the new tariffs. Bernstein has maintained an “Outperform” rating with a price target of $575.00, confident that Ferrari’s wealthy customer base can absorb price hikes, ensuring continued demand for its luxury vehicles.
Despite the challenges posed by the new tariffs and evolving market conditions, Ferrari remains strategically positioned to navigate these hurdles, showcasing resilience and long-term growth potential.
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