Ferrari Stock Roars Back: Why Analysts Say the Prancing Horse Still Has Plenty of Upside

Ferrari has successfully navigated the initial turbulence following the unveiling of its first electric vehicle, the "Luce," with its stock showing a notable recovery. Despite initial investor and consumer disappointment over the Luce model's perceived departure from the brand's iconic design philosophy, shares have rebounded and are now up 14% from pre-reveal levels.

Analysts are increasingly optimistic, with Bank of America reiterating a 'buy' rating and raising its price target to $458 from $403, indicating an almost 22% potential upside. Wolfe Research has also initiated coverage with a 'buy' rating and an implied price target of $436 for the Italian stock. Currently, 14 out of 15 analysts recommend Ferrari as a 'buy' or 'strong buy'.

Despite this positive outlook, the stock has experienced a significant downturn over the past year, sinking 24%, partly due to disappointing forward financial forecasts issued in October 2025. However, recent strategic moves by Ferrari appear to be assuaging electrification concerns among investors and analysts.

The launch of the 12 Cilindri Manuale, a $675,000 vehicle featuring a 12-cylinder engine and a 6-speed shifter, has been a key factor. Analyst Horst Schneider of Bank of America believes this model will effectively counterbalance the anticipated lower sales of the Luce EV. Schneider adjusted his forecasts, reducing the Luce (BEV) prediction from 1,000 to 500 units for 2027e while adding 500 units for the 12 Cilindri Manuale over the 2027e-2029e period. He noted, "The revenue offset is almost perfect, as both cars are priced at broadly similar levels." He added that for bulls, the Manuale provides "a major relief after Luce design concerns; for bears, it reduces the risk that Luce uncertainty becomes a 2027-29 earnings problem."

Wolfe Research echoed this sentiment, suggesting that electrification risks are overstated. Analyst Emmanuel Rosner pointed out that Ferrari has strategically made EVs a lower priority while simultaneously building crucial expertise that could position the company advantageously if the market demand for electrified vehicles increases. "The company learned some important lessons from its first encounter with alternative powertrains," Rosner stated. "This gives us confidence that the company will take a moderate approach to its powertrain strategy going forward and steer its offering where demand is."

Looking ahead, 2027 is poised to be a significant growth year for Ferrari, driven by new models expected to boost sales volumes and profit margins. Rosner also highlighted Ferrari's historical tendency to "under-promise and over-deliver," with the company consistently exceeding initial guidance expectations, excluding the COVID-19 period.

Ferrari's next quarterly earnings report is anticipated at the end of July.