Ferrari N.V. (NYSE: RACE) is navigating a period of adjusted expectations as several analysts have revised their price targets for the luxury automaker. These adjustments come in the wake of Ferrari’s updated financial guidance and strategic revisions, impacting market sentiment and the company’s stock performance.
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More Analysts Trim Ferrari Price Targets
The stock is currently trading at $369.71, up $1.11 (0.00%) from the previous close. This movement reflects the market’s ongoing assessment of Ferrari’s future prospects following recent announcements.
RBC Capital lowered its price target on RACE to €435 from €460, maintaining an “Outperform” rating. This adjustment reflects concerns over potential tariffs and their impact on Ferrari’s profitability. RBC noted that Ferrari has proactively addressed these challenges by implementing a policy allowing up to a 10% price increase on selected models shipped to the United States. Berenberg also reduced its price target to €381 from €399, while keeping a “Buy” rating, highlighting Ferrari’s strong brand heritage and pricing power but expressing caution regarding the company’s revised 2030 financial targets.
During its Capital Markets Day on October 9, 2025, Ferrari updated its financial outlook. The company projects net revenues of at least €7.1 billion for 2025, with an EBIT margin of at least 29.0%, resulting in EBIT of at least €2.06 billion and earnings per share of at least €8.80. However, the 2030 targets, projecting revenues of approximately €9 billion with an EBIT margin of at least 30%, fell short of consensus estimates of €10.165 billion in revenue and a 32.4% EBIT margin. These projections led to a significant decline in Ferrari’s stock price, with shares dropping nearly 15% on October 9, marking the worst trading day since its listing.
Ferrari has also announced changes to its product lineup, revising its 2030 propulsion targets. The company increased its allocation for internal combustion engine vehicles from 20% to 40% while reducing electric vehicles from 40% to 20%. The first electric model, the Elettrica, is scheduled for full launch in Spring 2026.
UBS maintained a “Buy” rating with a price target of $563, citing Ferrari’s strong brand and pricing power. UBS believes Ferrari’s strategy to protect long-term growth by maintaining its scarcity-driven approach is appropriate. Jefferies reiterated a “Hold” rating with a price target of €420, expressing caution amid a broader luxury sector reassessment.
RACE Analyst Summary
Bull Case
- Strong brand and pricing power support revenue.
- Proactive tariff mitigation through price adjustments.
- UBS maintains a “Buy” rating based on scarcity approach.
Bear Case
- Lowered 2030 financial targets disappoint markets.
- RBC and Berenberg lowered price targets recently.
- Shift in EV strategy raises questions about future growth.
The market’s reaction to Ferrari’s strategic shifts and revised financial targets has been mixed. While the company’s brand strength and proactive measures provide a foundation for future growth, the lowered price targets reflect concerns about profitability and the pace of its transition to electric vehicles. The future performance of RACE shares will likely depend on its ability to execute its revised strategy and navigate the evolving landscape of the luxury automotive market.
