Ferrari got rid of its latest recommendation to sell shares. What's their potential?

Analysts of Citigroup for the first time in two years raised the rating of shares of the Italian manufacturer of luxury cars Ferrari. Now the securities have no recommendations to sell. Wall Street positively assessed the latest quarterly results: the company's shares rose by 16% for three days.

Citigroup raised the rating of Ferrari shares to Hold, meaning a recommendation to hold, abandoning the Sell rating, which it has held for the past two years, Bloomberg writes. The reason for the increase was the reporting for the fourth quarter of 2025, which was better than Wall Street expectations, as well as confident targets for 2026, the agency noted.

"While we see further challenges ahead, the short-position scenario may have played out for now, and we may see investors return to this company for some time," said Citi analyst Harald Hendrikse in a note quoted by Bloomberg.

At the same time, the bank does not believe that Ferrari's prospects have significantly improved. According to Hendrikse, the report was "highly unusual" because the company exceeded the forecasts, which the company itself lowered in January. The analyst speculated that Ferrari may have decided to accelerate deliveries of the F80 supercar in late 2025 and into 2026 to shore up margins, risking a slowdown later in the year. "It's hard to say what has changed since January. Ferrari's management is protecting earnings for fiscal 2026 to support the stock," Hendrikse said.

Ferrari said in comments to Bloomberg that it is focused on the strength of its lineup and did not provide data on individual models. The company added that it is managing supply to achieve "controlled growth."

Ferrari securities, traded in New York, rose by 2.15% in the trades on February 12, although the market as a whole fell sharply. Over the three trading days since the publication of the reports, the securities rose by 16.4%.

After Citi's decision, Ferrari has no more "sell" ratings among analysts tracked by Bloomberg. This is confirmed by FactSet data: according to them, the Italian company's securities have a total of 18 recommendations to buy (Buy and Overweight) and seven recommendations to hold (Hold).

In January, Bernstein analyst Steven Reitman pointed out that profitability in 2026 could be under pressure due to a stronger dollar and the launch of new models, Bloomberg writes. At the same time, the company noted that it has flexibility in the F80 delivery schedule and can shift them to later periods to support financial performance.

Following the release of Ferrari's financials, Equita analysts raised their recommendation from Hold to Buy, Investing.com reported. Equita noted that currency fluctuations will be offset by early deliveries of more expensive and marginal models, including the F80, including the start of sales of the company's first electric car in May this year.

At the same time, the British bank HSBC in January, on the contrary, downgraded the rating of the Italian company from Buy to Hold, explaining it by the correction of its expectations for profits, as well as pointing to the growth of currency fluctuations and the increase in costs for the racing team in "Formula 1" from $135 million to $215 million a year.

The average target price for Ferrari securities is $455.43, FactSet shows. This is 16% higher than the closing level on February 12.

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