© Reuters.
MARANELLO – UBS has updated its outlook on Ferrari (NYSE:), the renowned Italian sports car manufacturer, by increasing the price target from $380 to $417, suggesting more than a 16% return potential. This bullish stance comes after a comprehensive review of the luxury sector, with Ferrari emerging as a strong defensive choice in the face of economic uncertainty and downturns in the luxury market.
Ferrari’s deep connections with its wealthy customer base and a robust order book that extends operations well into fiscal year 2025 underpin this optimistic forecast. Following an exceptional performance this year, UBS anticipates that Ferrari will continue to outperform.
The upgrade reflects confidence in Ferrari’s ability to navigate through economic headwinds and maintain its appeal among affluent consumers. The company’s sustained business prospects are attributed to its significant order backlog and a “normalized” growth rate adjustment for currency effects. UBS’s revised price target serves as a guide for investors considering Ferrari’s stock in the context of broader market conditions.
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