RACE Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Ferrari NV (RACE) is a strong buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong fundamentals, resilient business model, robust order book, and shareholder-friendly initiatives such as dividends and buybacks make it an attractive investment. Despite minor short-term risks, the long-term growth outlook and luxury brand positioning outweigh the negatives.
The MACD is positive and contracting, indicating a bullish trend. The RSI is at 71.88, suggesting the stock is nearing overbought territory but not yet signaling a reversal. The stock is trading above its pivot level of 347.674, with resistance levels at 360.154 and 367.864, indicating potential upside in the short term.
Ferrari's order book is filled until the end of 2027, ensuring strong pricing power and demand stability.
Shareholder-friendly initiatives such as a €3.615 per share dividend and a €250 million share buyback program.
Ferrari's P/E ratio of 35.2 is below its historical average, presenting a relatively attractive valuation.
Analysts maintain a positive outlook with multiple Buy ratings and price targets ranging from $350 to $
Hedge funds are significantly increasing their positions in the stock.
Analysts expect Q1 2026 to be Ferrari's weakest quarter, with deliveries picking up in Q
Slight contraction in sector multiples due to geopolitical risks, such as the war in Iran.
Short-term stock trend analysis suggests a potential minor decline in the next week (-3.21%).
In Q4 2025, revenue increased by 3.79% YoY to €1.801 billion, gross margin improved to 51.88%, and EPS remained flat at 2.14. However, net income dropped slightly by -1.18% YoY to €379.686 million. Despite the minor net income decline, the company continues to demonstrate strong profitability and operational efficiency.
Analysts are broadly positive on Ferrari. Recent upgrades include Jefferies raising its price target to $400 and upgrading to Buy, citing high-single-digit revenue growth and margin expansion. UBS and BofA also maintain Buy ratings, with price targets of $483 and €350, respectively, citing Ferrari's resilience and strong fundamentals. JPMorgan and Morgan Stanley also express optimism with price targets of $447 and $420, respectively.
