Ferrari has shaken off its Luce-induced slide, but analysts believe the luxury automaker still has plenty more room to recover. Investors and consumers alike were disappointed when Ferrari unveiled its first EV in late May, saying the Luce model strayed far from the brand's design philosophy. Shares fell quickly following the reveal, but have since recovered and are now 14% higher than they were before the EV debuted. In a note early last week, Bank of America reiterated a buy rating and increased the price target to $458 from $403, suggesting almost 22% upside from Friday's close. A day later, Wolfe Research initiated coverage of Ferrari, rating it a buy with an implied $436 price target (Wolfe gave a price target for the Italian stock, not the U.S. shares). According to LSEG, 14 of 15 analysts covering Ferrari rate it either buy or strong buy. Despite the recent recovery, Ferrari remains in the doldrums, sinking 24% in the past year. The stock dropped 17% in October 2025 alone, after management issued disappointing forward financial forecasts. RACE 1Y line Ferrari ADRs in the past 12 months Both Bank of America and Wolfe are more confident after Ferrari moved to settle electrification concerns. Bank of America's report last week came after Ferrari unveiled its 12 Cilindri Manuale, a 12-cylinder with a 6-speed shifter and an electronic clutch priced at $675,000. Analyst Horst Schneider believes the manual-style transmission model will balance lower sales from Luce. "We cut our Luce (BEV) forecast from 1,000 units to 500 units from 2027e, but add 500 units for the 12 Cilindri Manuale over 2027e-2029e. The revenue offset is almost perfect, as both cars are priced at broadly similar levels," Schneider wrote. "For bulls, the Manuale is a major relief after Luce design concerns; for bears, it reduces the risk that Luce uncertainty becomes a 2027-29 earnings problem." Wolfe said the electrification risk is overblown. Analyst Emmanuel Rosner wrote that Ferrari has already taken steps to make electric vehicles less of a priority, at the same time that it "has built critical know-how that will put the company ahead of competition if the market demands more electrified vehicles." "The company learned some 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 steer its offering where demand is," the analyst wrote. Looking ahead, the current transition year sets up Ferrari for rapid growth in 2027, when new models boost sales volumes and profit margins, Rosner said. History favors the Italian automaker's conservative forecasts. "We found out that the company tends to under-promise and over-deliver," Rosner added. Excluding Covid, "RACE has consistently delivered results above initial guidance expectations." Ferrari's next quarterly earnings report is expected to be released at the end of July.
