Analyst raises RACE price target to €380, seeing 24% upside after a 26% share decline despite limited earnings cuts.
Morgan Stanley upgraded Ferrari (RACE) to Overweight and lifted its price target to €380 from €330, citing excessive investor punishment over the Luce EV backlash. The new target implies 24% upside from current levels after the stock fell 26% in the past year.
Earnings revisions for 2026-2027 have been trimmed by just 4%, suggesting the sell-off stems from valuation contraction rather than fundamentals. Ferrari’s profit margins remain near 40%, among the highest in the industry, while demand for models like the 12Cilindri stays strong.
Shares rebounded slightly following the analyst call, though Morgan Stanley acknowledged ongoing capital markets debate around Ferrari’s EV strategy.