Morgan Stanley Upgrades Ferrari Recommendation - Sees 24% Potential in Stock

Morgan Stanley upgraded Ferrari's stock rating to "Overweight" and raised its price target from €330 to €380, implying approximately 24% upside potential from current levels.

Over the past 12 months, Ferrari's shares have declined by approximately 26%, while earnings forecasts for 2026-2027 have decreased by only 4%. According to the bank's analysts, the stock decline was primarily driven by multiple compression rather than deterioration in the company's fundamental position.

Investor concerns have been driven by a slowdown in the company's growth rate, declining secondary market prices for hybrid models — the 296 and SF90 — and uncertainty surrounding Ferrari's first fully electric vehicle, the Luce.

However, according to a dealer survey conducted by Morgan Stanley in the US and Europe, these factors have not caused long-term damage to the Ferrari brand. In the analysts' view, the price correction for hybrid models is nearing completion, and demand is gradually stabilizing.

The bank believes the market has overestimated existing risks and Ferrari's current stock price no longer fully reflects the company's real prospects.