Morgan Stanley Issues Pessimistic Forecast for Ferrari (NYSE:RACE) Stock Price

Key Points

• Morgan Stanley lowered Ferrari’s price target from $460 to $456 but maintained an “overweight” rating, implying roughly 13.5% upside from the stock’s current price.
• Analyst sentiment remains broadly positive: Ferrari has an overall “Moderate Buy” consensus rating and an average price target of $478.42, supported by multiple Buy and Strong Buy recommendations.
• Ferrari exceeded quarterly expectations, reporting $2.99 in earnings per share and $2.21 billion in revenue; revenue increased 8.4% year over year, while the company posted a 22.29% net margin.

Ferrari (NYSE:RACE - Get Free Report) had its price objective lowered by analysts at Morgan Stanley from $460.00 to $456.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 13.48% from the company's current price.

A number of other analysts also recently issued reports on RACE. Weiss Ratings reiterated a "hold (c)" rating on shares of Ferrari in a research report on Wednesday, July 8th. Wolfe Research assumed coverage on shares of Ferrari in a research report on Tuesday, July 7th. They issued an "outperform" rating on the stock. Sanford C. Bernstein lifted their target price on shares of Ferrari from $402.00 to $460.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Evercore reissued an "outperform" rating and issued a $485.00 price target on shares of Ferrari in a research note on Friday, July 31st. Finally, UBS Group reissued a "buy" rating on shares of Ferrari in a report on Monday, September 21st. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $478.42.

Ferrari Stock Performance

NYSE RACE opened at $401.82 on Wednesday. Ferrari has a 1 year low of $312.51 and a 1 year high of $504.49. The company has a debt-to-equity ratio of 0.86, a current ratio of 4.85 and a quick ratio of 3.70. The stock has a market capitalization of $94.00 billion, a PE ratio of 37.31, a P/E/G ratio of 3.40 and a beta of 0.92. The company's 50 day simple moving average is $407.25 and its two-hundred day simple moving average is $370.15.

Ferrari (NYSE:RACE - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The company reported $2.99 EPS for the quarter, beating analysts' consensus estimates of $2.83 by $0.16. The firm had revenue of $2.21 billion during the quarter, compared to analyst estimates of $2.14 billion. Ferrari had a net margin of 22.29% and a return on equity of 42.83%. The business's revenue for the quarter was up 8.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.38 EPS. Analysts predict that Ferrari will post 11.23 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Ferrari

A number of large investors have recently modified their holdings of RACE. Anchor Investment Management LLC grew its position in Ferrari by 1,625.0% during the second quarter. Anchor Investment Management LLC now owns 69 shares of the company's stock valued at $26,000 after acquiring an additional 65 shares during the last quarter. Bellevue Asset Management LLC purchased a new position in shares of Ferrari during the first quarter worth approximately $34,000. Dunhill Financial LLC bought a new stake in shares of Ferrari in the 2nd quarter worth approximately $38,000. Ameritas Advisory Services LLC bought a new stake in shares of Ferrari in the 2nd quarter worth approximately $38,000. Finally, Evelyn Partners Investment Management Europe Ltd purchased a new stake in shares of Ferrari in the 4th quarter valued at $47,000.

About Ferrari

Ferrari N.V. is an Italian luxury automotive company that designs, develops, manufactures and sells high-performance sports cars. Its product portfolio includes mid- and front-engine sports cars, grand touring models, special-series vehicles and limited-edition automobiles. Ferrari also develops hybrid and other electrified models while maintaining a focus on performance, craftsmanship, design and exclusivity.

The company generates additional activities through its racing operations, vehicle personalization programs, financial services, merchandise, licensing and branded experiences.

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