On Tuesday, Bernstein analysts confirmed their Outperform rating and $575.00 price target on Ferrari (NYSE: NYSE:RACE) stock. With a current market capitalization of $75.9 billion and trading at $424.23, Ferrari's premium valuation reflects its position in the luxury market.
According to InvestingPro data, the stock trades at elevated multiples across key metrics, indicating market confidence in its business model. The reaffirmation follows Ferrari's strong denial of recent claims made by a blog post suggesting that some of the F80 supercar production run remained unsold. The analyst highlighted communication with Ferrari's investor relations, who categorically denied the report, stating that all 799 vehicles have been allocated to top customers.
These customers had the opportunity to view the F80 at a series of presentations held in Maranello from October 5 to October 14. Ferrari is currently finalizing contracts, which is a standard procedure.
The company's strong financial performance, with revenue growth of 11.18% and an impressive gross profit margin of 49.8%, supports its premium positioning in the luxury automotive sector. The analyst also referenced the official press conference on October 17, where Ferrari's commercial director, Enrico Galliera, announced that demand for the F80 was three times higher than the limited production run.
Analyst commented on the unique nature of Ferrari's customer base and suggested that comparisons of the F80's value to that of the McLaren W1 might not be appropriate. He noted a listing on Mobile.de, a German website, where an F80 was mentioned at a price of €5.9 million, indicating strong perceived demand for the supercar. This listing could be seen as reflective of the market's interest before Ferrari potentially intervened with the seller.
The analyst's statement serves to dispel doubts about the F80's sales and underscores Ferrari's status in the luxury car market. Ferrari's swift response to the blog post and the analyst's support reinforce the company's reputation for exclusivity and high demand among its clientele.
InvestingPro analysis reveals the company maintains a "GREAT" financial health score, with 15+ additional exclusive insights available for subscribers. For deeper analysis of premium automotive stocks and luxury sector trends, access the comprehensive Pro Research Report, part of the extensive coverage of 1,400+ US equities on InvestingPro.
In other recent news, Ferrari reported a robust financial performance in the third quarter of 2024, with revenues surging 7% year-over-year to EUR 1.6 billion and a substantial net profit of EUR 375 million. This growth is attributed to a healthy order intake for the new 12Cilindri coupe Spider and the anticipated F80 supercar.
The luxury automaker also announced a multi-year agreement to supply Andretti Formula Racing LLC with power units and gearboxes for a potential entry into the 2026 FIA Formula One World Championship.
Bernstein and Barclays (LON:BARC) have maintained their positive ratings on Ferrari's stock, citing the company's strategic focus on product mix as a growth driver and its strong order book that extends well into 2026. Ferrari has also demonstrated its commitment to sustainability with the early closure of its gas-powered generation plant, contributing to its carbon neutrality goals.
These recent developments highlight the company's operational efficiency and strategic focus, and investors can look forward to the official fourth-quarter results in February 2025 for more detailed financial insights.
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