Key insights
- Morgan Stanley upgraded Ferrari (RACE) to Overweight with a higher price target, citing multiple compression rather than earnings deterioration as the cause for its recent stock decline. The upgrade, coupled with an ongoing share buyback program and a positive global equity market backdrop, drove Ferrari's stock higher. This suggests potential for continued positive sentiment in high-beta luxury stocks, though the direct impact on broader US markets is limited.
Investing.com -- Ferrari NV stock surged +4.0% to reach $319.10 after Morgan Stanley upgraded the Italian luxury automaker from Equalweight to Overweight and raised its price target to EUR 380 from EUR 330, implying roughly 24% upside from prior levels.
The bank’s analysts concluded that Ferrari’s approximately 26% share price decline over the preceding 12 months was driven overwhelmingly by multiple compression — a de-rating — rather than any meaningful deterioration in the company’s earnings power, noting that FY26–27 EPS estimates had been trimmed by only around 4% over the same period.
The upgrade served as the dominant catalyst, but it was reinforced by Ferrari’s ongoing €3.5 billion multi-year share buyback program, which continues to demonstrate management’s confidence in the stock’s intrinsic value.
The broader analyst community has remained constructive on the name, with the consensus price target sitting well above current trading levels, suggesting the Morgan Stanley move aligns with — and amplifies — an already bullish institutional stance.
Italy’s FTSE MIB has been trading near multi-decade highs in the 51,000 area, buoyed by positive banking-sector momentum and easing geopolitical tensions.
U.S. markets are also in the green today, with the S&P 500 adding +0.5% and the Dow Jones up +0.7%, providing a constructive global backdrop that made investors more receptive to re-engaging with a high-beta luxury name like Ferrari.
Taken together, a compelling re-rating thesis from one of Wall Street’s most influential banks, a well-supported buyback program, and a broadly positive equity environment combined to push Ferrari shares sharply higher today, with the stock touching a session high of $321.95 as buyers moved aggressively to close the gap between the current price and what analysts view as fair value.
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