"Counterbalancing the uncertainty": Jefferies recommended buying Ferrari shares

Analysts at Jefferies have improved their recommendation on shares of luxury sports car maker Ferrari, CNBC reports. They abandoned the neutral position and advised to buy the company's securities, pointing to the significant growth potential. The investment bank increased the average target price from €310 to €350, up 21% from the last close.

Jefferies expects the automaker's revenue to grow at high single-digit percentages, i.e. about 7-9% per year, and margins will also gradually expand. According to analysts, the pressure on resale prices of Ferrari's core lineup of cars is easing, and rare and specialty models are even appreciating noticeably. The bank believes that Ferrari shares are now undervalued as a luxury asset.

"We believe the luxury brand's premium in stock valuation could recover to around 50%, making them a macro-resilient counterweight to overall uncertainty," the analysts wrote.

Ferrari shares added 3% in Milan trading on April 1, with the stock down 6.5% since the beginning of the year.

Analyst Tom Narayan of RBC also considers Ferrari shares attractive and recommended them for purchase on March 31. His target of €430 implies a potential growth of quotations by almost 49%.

On April 1, Barclays reiterated a buy recommendation on the luxury automaker and maintained its target price at €360. This is 24.6% up from the last close.

Of the 18 analysts covering Ferrari securities, 12 of them advise increasing stakes in them. The rest have taken a neutral stance with a "hold" rating.

This article was AI-translated and verified by a human editor