Morgan Stanley ups Ferrari to 'overweight', says Luce risks priced in

Ferrari NV

Mon 09:02

** Morgan Stanley upgrades Ferrari RACE.MI to "overweight" from "neutral", seeing the recent stock de-rating as overly punishing and overstating brand risk
** MS notes Ferrari fell by around 26% in the last 12 months, an "initially understandable" de-rating following a disappointing CMD and concerns over its foray into electric models - in particular over its first EV, Luce
** "However, our latest work suggests the market has moved too far in pricing these issues as terminal brand risk," it says
** MS considers Luce's risk priced-in, as demand remains strong in key areas such as special series and scarce collectibles, with further launches expected in 2026 that can shift the narrative to one of a desirable line-up 
** The broker raises its price target by 15% to €380 for the Milan-listed shares and by 12% to $438 for the New York-listed shares
** Of 19 analysts covering Ferrari, 14 rate the stock "strong buy" or "buy,"​ four "hold" and one "sell" - LSEG data
** Milan-listed shares are up 4.6%, as European autos .SXAP and luxury stocks .STXLUXP rise sharply after the announcement of a preliminary peace deal between U.S. and Iran  

($1 = 0.8616 euros)

 (Enrico Sciacovelli)
 ((Enrico.sciacovelli@thomsonreuters.com))