RACE Should I Buy
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Ferrari NV (RACE) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong fundamentals, positive growth potential, and favorable sentiment from hedge funds and analysts. Despite minor short-term risks, the stock aligns well with the user's investment profile.
The MACD is positive at 2.17, indicating bullish momentum, while the RSI of 63.228 is neutral, suggesting no overbought or oversold conditions. The stock is trading near the pivot level of 374.334, with key resistance at 388.354 and support at 360.315. Moving averages are converging, signaling potential stability or a forthcoming trend.
Ferrari's €3.5 billion share buyback program demonstrates confidence in the company's value. The 7% revenue increase in 2025, strong demand for its first electric vehicle (Luce), and a 29.5% operating margin highlight robust growth potential. Hedge funds have significantly increased their buying activity, indicating institutional confidence.
Net income dropped slightly by -1.18% YoY in Q4 2025, and EPS growth was stagnant. Broader market sentiment is slightly negative, with the S&P 500 down -0.39% pre-market.
In Q4 2025, Ferrari's revenue increased by 3.79% YoY to €1.8 billion, while gross margin improved to 51.88%, up 3.35% YoY. However, net income declined by -1.18% YoY to €379.7 million, and EPS remained flat at 2.14. Overall, the company shows strong operational efficiency and revenue growth, offset by a minor decline in net income.
Analysts have a generally positive outlook on Ferrari. Recent upgrades include Citi upgrading the stock to Neutral from Sell and RBC Capital raising its price target to EUR 430 with an Outperform rating. Morgan Stanley, Jefferies, and others have also raised price targets, citing strong FY25 results and FY26 guidance. However, some firms, like BofA and UBS, have lowered targets slightly due to cautious delivery strategies and investor skepticism.
