Ferrari (RACE) Maintains High Margins and Prepares for Electric Vehicle Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- High Margins: Ferrari boasts a gross margin of 51.25%, standing out in the competitive automotive industry by limiting sales and continuously innovating technology, ensuring its pricing power and profit growth.
- Strong Market Demand: The upcoming F80, priced at nearly $4 million, is already sold out, demonstrating Ferrari's strong brand influence and customer demand in the luxury market despite its high price point.
- Electric Vehicle Strategy: In Q3 2025, 57% of Ferrari's shipments were internal combustion engine vehicles while 43% were hybrids, indicating a cautious approach to electric vehicle transition, waiting for market readiness.
- Sustained Competitive Advantage: With its unique business model and ongoing technological innovation, Ferrari has consistently improved its operating margins and stock price over the past decade, showcasing its potential as a “hidden gem” for investors.
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 481.74 USD with a low forecast of 392.11 USD and a high forecast of 554.00 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
12 Buy
2 Hold
1 Sell
Moderate Buy
Current: 354.570
Low
392.11
Averages
481.74
High
554.00
Current: 354.570
Low
392.11
Averages
481.74
High
554.00
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.
