Ferrari: A Unique Investment Opportunity in Luxury and Scarcity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy RACE?
Source: Fool
- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RACE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RACE is 448.83 USD with a low forecast of 349.74 USD and a high forecast of 555.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 334.760
Low
349.74
Averages
448.83
High
555.00
Current: 334.760
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Ferrari Initiates €3.5 Billion Share Buyback Program
- Buyback Program Launch: Ferrari has initiated the first tranche of its €3.5 billion share buyback program announced on December 16, 2025, purchasing 54,500 shares between January 26 and 30, 2026, with a total investment of €15,374,530, demonstrating the company's confidence in its stock value.
- Transaction Details: During this first tranche, Ferrari repurchased shares at an average price of €282.10, indicating proactive capital management amid market fluctuations, aimed at enhancing shareholder value and boosting market confidence.
- Shareholding Update: As of January 30, 2026, Ferrari held 16,837,806 treasury shares, representing 8.68% of total issued shares, reflecting a stable capital structure during the buyback process.
- Long-term Strategic Planning: The multi-year buyback program is expected to execute approximately €3.5 billion by 2030, showcasing the company's strong confidence in future growth and its commitment to enhancing shareholder returns through ongoing capital repurchases.
See More
Ferrari: A Unique Investment Opportunity in Luxury and Scarcity
- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
See More
Investment Opportunities in the EV Market
- Quantum Battery Breakthrough: QuantumScape is developing solid-state lithium-metal batteries that promise faster charging, longer range, and lower costs, potentially becoming the 'holy grail' for EV batteries, which could attract more institutional investors.
- Accelerated Commercialization: Transitioning from research to initial revenue in early 2026, QuantumScape began shipping QSE-5 cell samples in Q3, marking a significant milestone toward commercial production and expected to reduce investment risks.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's shipments, demonstrating a robust approach to the EV market, with high demand and pricing power allowing the company to maintain profitability during the transition.
- Dual Investment Perspectives in EV Market: QuantumScape and Ferrari represent two distinct investment strategies in the EV market, with QuantumScape poised to lead solid-state battery production for high-risk, high-reward investors, while Ferrari offers a stable transition through hybrids, catering to varying risk appetites.
See More
Investment Opportunities in the Electric Vehicle Market
- Battery Technology Breakthrough: QuantumScape's solid-state battery technology promises faster charging and longer range, which is expected to significantly lower overall costs for electric vehicles, thereby driving rapid growth in the EV market.
- Partnership with Volkswagen: The joint venture with PowerCo will enable QuantumScape to license its battery technology for approximately 1 million vehicles annually, which is anticipated to generate a stable revenue stream through royalty payments.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's total shipments, demonstrating a robust positioning in the EV market, while high demand and pricing power allow the company to maintain impressive profit margins.
- Market Outlook and Risks: While QuantumScape's solid-state batteries could revolutionize the EV industry, its stock remains highly speculative and volatile, whereas Ferrari offers a more stable investment approach by balancing shipments of traditional supercars with its new hybrid models.
See More
Investment Opportunities in the Electric Vehicle Market
- QuantumScape's Battery Innovation: QuantumScape is developing solid-state lithium-metal batteries that promise faster charging, longer range, and lower costs, potentially becoming the 'holy grail' for EV batteries; while the stock remains highly speculative in the short term, long-term investors could see substantial returns.
- Partnership with Volkswagen: The joint venture with PowerCo, Volkswagen's battery entity, is expected to enable mass production of QuantumScape's battery technology for about 1 million vehicles annually, generating stable royalty income and reducing investment risks.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's shipments, showcasing a robust approach to EV market entry; while still focusing on high-margin internal combustion supercars, the company is gradually transitioning towards electrification.
- Sustained Profitability: Ferrari's operating margins have consistently risen, indicating that it is not facing the profitability challenges that many automakers encounter during their EV transitions, thus maintaining competitive advantages and attracting more investor interest.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Ferrari Initiates €3.5 Billion Share Buyback Program
- Buyback Program Launch: Ferrari has initiated the first tranche of its €3.5 billion share buyback program announced on December 16, 2025, purchasing 54,500 shares between January 26 and 30, 2026, with a total investment of €15,374,530, demonstrating the company's confidence in its stock value.
- Transaction Details: During this first tranche, Ferrari repurchased shares at an average price of €282.10, indicating proactive capital management amid market fluctuations, aimed at enhancing shareholder value and boosting market confidence.
- Shareholding Update: As of January 30, 2026, Ferrari held 16,837,806 treasury shares, representing 8.68% of total issued shares, reflecting a stable capital structure during the buyback process.
- Long-term Strategic Planning: The multi-year buyback program is expected to execute approximately €3.5 billion by 2030, showcasing the company's strong confidence in future growth and its commitment to enhancing shareholder returns through ongoing capital repurchases.
See More
Ferrari: A Unique Investment Opportunity in Luxury and Scarcity
- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
See More
Investment Opportunities in the EV Market
- Quantum Battery Breakthrough: QuantumScape is developing solid-state lithium-metal batteries that promise faster charging, longer range, and lower costs, potentially becoming the 'holy grail' for EV batteries, which could attract more institutional investors.
- Accelerated Commercialization: Transitioning from research to initial revenue in early 2026, QuantumScape began shipping QSE-5 cell samples in Q3, marking a significant milestone toward commercial production and expected to reduce investment risks.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's shipments, demonstrating a robust approach to the EV market, with high demand and pricing power allowing the company to maintain profitability during the transition.
- Dual Investment Perspectives in EV Market: QuantumScape and Ferrari represent two distinct investment strategies in the EV market, with QuantumScape poised to lead solid-state battery production for high-risk, high-reward investors, while Ferrari offers a stable transition through hybrids, catering to varying risk appetites.
See More
Investment Opportunities in the Electric Vehicle Market
- Battery Technology Breakthrough: QuantumScape's solid-state battery technology promises faster charging and longer range, which is expected to significantly lower overall costs for electric vehicles, thereby driving rapid growth in the EV market.
- Partnership with Volkswagen: The joint venture with PowerCo will enable QuantumScape to license its battery technology for approximately 1 million vehicles annually, which is anticipated to generate a stable revenue stream through royalty payments.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's total shipments, demonstrating a robust positioning in the EV market, while high demand and pricing power allow the company to maintain impressive profit margins.
- Market Outlook and Risks: While QuantumScape's solid-state batteries could revolutionize the EV industry, its stock remains highly speculative and volatile, whereas Ferrari offers a more stable investment approach by balancing shipments of traditional supercars with its new hybrid models.
See More
Investment Opportunities in the Electric Vehicle Market
- QuantumScape's Battery Innovation: QuantumScape is developing solid-state lithium-metal batteries that promise faster charging, longer range, and lower costs, potentially becoming the 'holy grail' for EV batteries; while the stock remains highly speculative in the short term, long-term investors could see substantial returns.
- Partnership with Volkswagen: The joint venture with PowerCo, Volkswagen's battery entity, is expected to enable mass production of QuantumScape's battery technology for about 1 million vehicles annually, generating stable royalty income and reducing investment risks.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's shipments, showcasing a robust approach to EV market entry; while still focusing on high-margin internal combustion supercars, the company is gradually transitioning towards electrification.
- Sustained Profitability: Ferrari's operating margins have consistently risen, indicating that it is not facing the profitability challenges that many automakers encounter during their EV transitions, thus maintaining competitive advantages and attracting more investor interest.
See More
