Analysts at the Goldman Sachs Group have upgraded Ferrari (NYSE:RACE) to a “strong-buy” rating, a significant move that investors are keenly watching. This decision, communicated in a note to investors on Monday, is part of a series of recent evaluations concerning the luxury car manufacturer.
The opinions from various research firms reveal a mixed outlook for Ferrari stocks. For instance, Evercore ISI recently lowered its target price from $580.00 to $475.00, while maintaining an “outperform” rating. In contrast, UBS Group has raised its target price from $529.00 to $554.00, granting the stock a “buy” rating. Other analysts, such as Sanford C. Bernstein, and JPMorgan Chase & Co., have also adjusted their target prices, showcasing the dynamic nature of assessments surrounding Ferrari’s market performance.
Despite these varied perspectives, the overall sentiment remains positive. According to data from MarketBeat.com, three investment analysts have rated the stock as a strong buy, while ten have issued a buy rating, and two have designated it as a hold. The average target price sits at $498.00, indicating a favorable outlook from the majority of analysts.
Recent Earnings and Institutional Activity
Ferrari recently reported its earnings on November 4, 2023, revealing an impressive earnings per share (EPS) of $2.50 for the quarter, surpassing the consensus estimate of $2.35 by $0.15. The company achieved a return on equity of 44.20% and a net margin of 22.65%. Revenue for the quarter reached $2.07 billion, significantly higher than the expected $1.94 billion. Looking ahead, Ferrari has set its fiscal year 2025 guidance at an EPS of 10.290, with analysts predicting an EPS of $9.22 for the current year.
Institutional investors are actively engaging with Ferrari shares. Mather Group LLC established a new position valued at approximately $27,000 in the third quarter. Westside Investment Management Inc. doubled its holdings, bringing its total to 56 shares valued at $27,000 after acquiring additional shares. Other notable transactions include Root Financial Partners LLC and Newbridge Financial Services Group Inc., both of which made new investments in the company.
Company Overview
Ferrari N.V., through its subsidiaries, is involved in the design, engineering, production, and sale of luxury performance sports cars globally. The company offers a diverse range of vehicles, including special series, Icona, supercars, and limited edition models. Additionally, it provides racing cars, spare parts, and after-sales services, further solidifying its position in the luxury automotive market.
As investor interest in Ferrari continues to grow, the company’s strategic moves and performance will likely remain under close scrutiny in the coming months.
