Ferrari is poised for a rebound, according to Morgan Stanley, which upgraded the stock from equal-weight to overweight and increased its price target from $388 to $438. Analyst Edouard Aubin highlighted that the recent decline in Ferrari's stock, which has fallen 23% over the past year, does not accurately reflect the brand's strength or future potential.
Despite a disappointing launch of the electric vehicle Luce, which caused a 5.6% drop in stock price, Aubin's analysis suggests that the market has overreacted to concerns about brand risk and hybrid residual values. Morgan Stanley's checks with dealers in the U.S. and Europe indicate that the Ferrari brand remains strong, supported by its unique product offerings and limited allocations.
The consensus among analysts is positive, with 11 out of 13 recommending a buy or strong buy on Ferrari shares