Shares of Ferrari (NYSE:RACE) are higher in today’s trading session, which can be attributed to analyst praise. Tom Narayan from RBC Capital Markets (NYSE:RY) rates the stock a Buy with a price target of €265 (roughly US$286). Narayan has taken a long-term view by noting that he expects revenue to double and EBIT to almost triple by 2030.
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He believes Ferrari deserves its valuation premium due to its large wait list and limited cyclicality. In addition, it has very solid and stable gross profit margins of more than 50%. For reference, its mass-production peers have gross profit margins of around 20%.
Overall, Wall Street analysts are bullish on RACE stock with a Moderate Buy rating. In addition, the consensus price target of $246.76 implies 2.31% upside potential, as indicated by the graphic above.
