Ferrari is often overlooked due to the nature of the auto industry -- but that's a mistake. Ferrari's margins approach luxury territory, unlike typical automakers.
Ferrari N.V. is upgraded to Buy as valuation compresses and key risks abate, offering renewed upside. Governance stability is reinforced by a renewed shareholder pact, while lifestyle and Tailor Made car initiatives support profit growth. EV execution risk has eased thanks to regulatory flexibility and RACE's luxury positioning, while the 2026 FIA rule reset represents a clean starting point after a weak 2025 on-track season.
Ferrari stands out as perhaps the best-run auto manufacturer, combining legendary brand strength with exceptional financial discipline. RACE boasts industry-leading 22.6% net margins and robust revenue and EPS growth far surpassing its peers. Despite a premium P/E valuation, Ferrari's superior growth and financial resilience justify a bullish rating and a buy recommendation.
Ferrari (NYSE:RACE) is likely to face continued valuation pressure as softer shipment expectations and ongoing earnings downgrades weigh on investor sentiment, Jefferies said on Wednesday. “We trim our 2026 estimates to better reflect RACE's sustained rate of new model ramp ups next year, which will likely mean reduced shipments in the quarters ahead and greater margin dilution from growing D&A,” analysts wrote.
Ferrari now trades at its historical average P/E, following a correction from previously overvalued levels, prompting an upgrade to Buy. RACE's scarcity-driven strategy ensures controlled, moderate growth, with a filled order book into 2027 and a conservative 2030 revenue target of €9 billion. Recent financials show shipment growth slowing but strong pricing leads to expanding margins.
RACE's stock slump contrasts with resilient demand, rich margins and a deep order backlog that highlights the brand's long-term strength.
RACE's Q3 performance surged as the Purosangue SUV redefined exclusivity, fueling demand and strengthening margins.
Ferrari (NYSE:RACE) reported third-quarter earnings that beat expectations, buoyed by higher prices and strong demand for customized and hybrid vehicles, even as weaker China sales and US tariff concerns lingered. Revenue rose 7% to €1.77 billion, surpassing analyst estimates of €1.71 billion, while EBIT increased 8% to €503 million.
Ferrari (RACE) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.35 per share. This compares to earnings of $2.29 per share a year ago.
Ferrari delivered more vehicles than expected, as weakness in Americas and China was offset by higher shipments elsewhere.
"We continue to advance with conviction and strong visibility on our development path," Ferrari CEO Benedetto Vigna said in a statement. In this article RACE-IT
Ferrari (RACE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.