RACE Should I Buy
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Ferrari NV (RACE) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has strong fundamentals, positive analyst sentiment, and hedge fund interest, the current pre-market price decline, lack of significant trading signals, and mixed financial performance suggest waiting for more clarity after the Q1 2026 financial results on May 5. Additionally, the technical indicators do not provide a compelling entry point at this time.
The MACD histogram is above 0 and positively contracting, indicating a potential weakening of bullish momentum. RSI is neutral at 45.104, and moving averages are converging, suggesting no clear trend. The stock is trading near its S1 support level of 348.761, which could act as a short-term floor, but there is no strong bullish signal.
Hedge funds are significantly increasing their positions in Ferrari, with a 353.70% rise in buying activity last quarter.
Ferrari's €250 million share buyback program demonstrates confidence in the company's financial health and commitment to shareholder returns.
Analysts maintain a generally positive outlook with multiple Buy ratings and price targets ranging from $350 to $483, citing resilience, strong order books, and growth potential.
Pre-market price is down by -1.60%, reflecting potential short-term bearish sentiment.
Financial performance in Q4 2025 showed a slight decline in net income (-1.18% YoY) despite revenue growth, which may raise concerns about profitability.
The next month stock trend analysis predicts a potential decline of -3.22%.
In Q4 2025, Ferrari's revenue increased by 3.79% YoY to €1.801 billion, and gross margin improved to 51.88% (+3.35% YoY). However, net income dropped slightly by -1.18% YoY to €379.7 million, and EPS remained flat at 2.14. The financials indicate stable but not exceptional growth.
Analysts are generally bullish on Ferrari, with recent upgrades and Buy ratings from firms like Jefferies and BofA. Price targets have been adjusted downward slightly due to sector-wide risks but remain optimistic, with a high target of $483 and a low target of €320. Analysts highlight Ferrari's resilience, strong order book, and potential for margin expansion as key positives.
