Ferrari Receives 'Compelling' Long-term Investment Rating from Berenberg, Started at Buy

Berenberg initiates coverage of Ferrari with a "Buy" rating, calling the luxury sports car maker a "compelling" long-term investment. The firm notes Ferrari's strong brand, loyal customer base, and high-margin business model as key drivers of its optimism.

Berenberg, a leading global investment bank, has initiated coverage of Ferrari N.V. (NYSE: RACE) with a "Buy" rating, labeling the luxury sports car maker a "compelling" long-term investment. The firm highlights Ferrari's strong brand, loyal customer base, and high-margin business model as key drivers of its optimism.

Ferrari, renowned for its high-performance vehicles and storied racing heritage, has built a reputation for engineering excellence and artisanal craftsmanship. The company's core business involves the design, development, and manufacture of premium sports cars, hybrid powertrains, and electric technologies. Ferrari's after-sales network supports maintenance, spare parts distribution, and restoration services, ensuring a comprehensive ownership experience. Beyond vehicle sales, Ferrari generates revenue through motorsport activities and brand licensing, including its Scuderia Ferrari Formula 1 team and driving schools.

The investment bank's optimism is bolstered by Ferrari's robust financial performance. The company reported earnings per share of $2.70 for the quarter ending July 31, 2025, beating the consensus estimate of $2.57 by $0.13. Revenue was up 4.4% compared to the same quarter last year. Berenberg also notes that Ferrari's P/E ratio of 50.71 is less expensive than the market average P/E ratio of about 269.85, indicating potential undervaluation.

Ferrari's transition towards electrification and digitalization, led by Chairman John Elkann and Chief Executive Officer Benedetto Vigna, is seen as a strategic move to future-proof the company. The firm's focus on innovation and sustainability aligns with global market trends, positioning Ferrari for long-term growth.

Berenberg's rating comes amidst a period of increasing investor sentiment, as indicated by a recent surge in short interest, which reached 2.06% of the float. The short interest ratio of 6.3 days to cover suggests a potential short squeeze if sentiment shifts positively.