Ferrari has shaken off the fallout from Luce, but analysts believe the luxury automaker still has plenty of room to recover. Investors and consumers alike were disappointed when Ferrari unveiled its first EV in late May, saying the Luce model was a significant departure from the brand’s design philosophy. The stock price fell sharply following the announcement, but has since recovered and is now up 14% from where it was before the EV’s debut. Bank of America reiterated its buy rating in a note early last week and raised its price target to $458 from $403, suggesting an upside of about 22% from Friday’s closing price. The next day, Wolf Research began coverage on Ferrari, rating it a buy with an implied price target of $436 (Wolf gave a price target for Italian stocks, not U.S. stocks). According to LSEG, 14 out of 15 analysts covering Ferrari rate it a “buy” or “strong buy.” Despite the recent recovery, Ferrari remains in the doldrums, down 24% over the past year. The stock price fell 17% in October 2025 alone after management released disappointing future financial forecasts. RACE 1Y LINE Ferrari ADR over the past 12 months Both Bank of America and Wolff are feeling more confident as Ferrari moves to address concerns about electrification. Bank of America’s report last week came after Ferrari unveiled a 12-cylinder “12 Cylinder Manuale” with a six-speed shifter and electronic clutch priced at $675,000. Analyst Horst Schneider believes manual-style transmission models will offset Luce’s sales decline. “We are lowering our forecast for Luce (BEV) from 1,000 to 500 units starting in 2027, but for the 12 Cylindri Manuale, we will add 500 units from 2027 to 2029. Since the prices of both vehicles are at about the same level, the revenue offset is almost perfect,” Schneider wrote. “For bulls, Manuale is a big relief from Luce’s design concerns. For bears, it reduces the risk that Luce’s uncertainty becomes an earnings issue in 2027-29.” Wolf said the risks of electrification were overstated. Analyst Emmanuel Rozner wrote that Ferrari has already taken steps to deprioritize electric vehicles, while at the same time “building important know-how that will give the company a competitive advantage should the market demand more electric vehicles.” “The company learned several important lessons from its first encounter with alternative powertrains,” Rosner wrote. “This gives us confidence that the company will take a moderate approach to its powertrain strategy going forward and deliver products where there is demand,” the analysts wrote. Looking ahead, Rozner said the current transition year will see Ferrari achieve rapid growth in 2027 with higher sales volumes and higher profit margins for new models. History favors the Italian automaker’s conservative forecasts. Rozner added: “We’ve found that the company tends to under-promise and over-deliver.” Excluding COVID-19, “RACE consistently delivered results that exceeded initial guidance expectations.” Ferrari’s next quarterly financial report is expected to be released at the end of July.
