Wolfe Research starts Ferrari at Outperform, sees 'solid upside potential'

Investing.com -- Wolfe Research initiated coverage of Ferrari with an Outperform rating and a €382 price target on Tuesday, arguing the luxury automaker's growth targets are too conservative and that new model launches will drive above-consensus revenue acceleration from 2027.

Analyst Emmanuel Rosner said Ferrari "has significantly underperformed since its 2025 Capital Markets Day," when the company issued a 5% compound annual growth rate target for 2025-2030 that came in below investor expectations.

However, Rosner said he sees "room to exceed its targets, as pricing of new models drives topline acceleration in 2027 and even more so when the entire model lineup is fully renewed by 2030."

Wolfe Research forecasts fiscal 2027 sales of €8.47 billion and EBIT of €2.62 billion, ahead of consensus estimates of €8.13 billion and €2.44 billion, respectively.

By 2030, Wolfe estimates average selling prices of €550,000 or above, supporting top-line CAGR of more than 6% and an EBIT margin of approximately 31%.

On electrification concerns, Rosner said fears are "overblown," noting Ferrari has "learned important lessons from its initial electrified vehicles" and will take a more moderate approach to its powertrain strategy going forward. He added that investments in electrification "are now in the rear-view mirror."

Wolfe's €382 price target is based on 33 times its above-consensus fiscal 2027 EPS estimate of €11.59, implying 13% upside. Rosner said if Ferrari's price-to-earnings multiple recovers toward its five-year average of 40 times, "considerable additional upside" would remain.

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