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.
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.
