Ferarri price target lifted by Evercore ISI on growth outlook

Ferrari (RACE) has received a price target boost from Evercore ISI with analysts raising their target to $465 from $430. The Evercore ISI team foresees growth opportunities for the luxury automaker and cites Ferrari's relatively lower exposure in markets such as China as a favorable factor.

Yahoo Finance's Seana Smith and Madison Mills break down the details.

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This post was written by Angel Smith

Video transcript

MADISSON MILLS: Well, more speed ahead for Ferrari. Analysts at Evercore ISI see nearly 15% upside for the stock. The firm raising its price target to $465 a share from $430. They cite combined accelerating growth and less exposure to the trouble spots in the global luxury markets, including, of course, China. And that part is to me, Seana, what's so interesting because this is a refrain we've already heard echoed throughout earnings season that just kicked off. LVMH talked about struggles from China. Obviously, this is impacting Tesla as well. So it continues to be a headwind.

SEANA SMITH: Yeah, exactly. At least when it comes to Ferrari here, China is only about 10% of sales versus 33% of most luxury brands. So we put that into context. It does show that they are a bit more shielded here, at least compared to their rivals of the slowing down or the slowness that we are seeing continuously play out within China right now.

That prolonged recovery is still not really taking hold, at least to what forecasters had anticipated it would look like up until this point. But when it comes to Ferrari, Evercore coming out with a number of reasons to remain optimistic on this name now. I guess just to point to that fact, some of these reasons that they are optimistic, they're seeing growth accelerating into 2025.

They're seeing some excitement surrounding the F1 coming up in Miami, some of the EV plans there. What exactly that is ultimately going to do for Ferrari's bottom line going into the future here. And then also just the combination of a good offense. They're saying and less exposure to some of those trouble spots that we were just talking about that really positions Ferrari well, at least amidst some of their competition at this point.