Bernstein SocGen Group has lifted its price objective for Ferrari to $410.00, up from $395.00, and reaffirmed an Outperform rating on the luxury automaker's shares. The move follows Ferrari's fourth-quarter 2025 announcement and accompanying fiscal 2026 guidance, which the analyst house cited in raising its valuation benchmark.
At the time of the revision, Ferrari shares were trading at $380.34 and carried a price-to-earnings ratio of 35.73, according to InvestingPro data. InvestingPro also places Ferrari's market capitalization at $67.44 billion and indicates that the stock is trading above its calculated Fair Value, categorizing it among names that may be considered overvalued.
Quarterly results and guidance
Ferrari reported fourth-quarter 2025 results on February 10 that surpassed consensus expectations, and management issued new guidance for fiscal 2026 that included an EBIT margin target of at least 29.5%. For the last twelve months, the company recorded annual revenue of $8.4 billion, representing 7% growth, and an EBITDA of $2.8 billion.
Bernstein highlighted the margin outlook, saying the 29.5% guidance "significantly exceeded a number of bearish market whispers that were circulating" prior to the announcement. The 29.5% floor aligns with the 27-30% margin range Ferrari outlined at its Capital Markets Day in June 2022, and it reinforces statements made by CEO Benedetto Vigna during the fiscal year 2023 results presentation in February 2024.
Market reaction and valuation notes
The market reacted briskly to the guidance. Ferrari shares rallied as much as 10% following the release before closing the day up 8%. Despite the positive intraday response, InvestingPro's assessment that the stock sits above its calculated Fair Value suggests investors are paying a premium for the company's growth and margin profile.
Management expressed increased confidence in reaching the high end of the 2026 targets, citing record 2023 results, strong ambitions for 2024, and what it described as "exceptional visibility" on the order book.
Other analyst activity
While Ferrari posted upside in the fourth-quarter results overall, some reported metrics fell short of expectations. The company disclosed fourth-quarter 2025 earnings per share of $2.14, below the forecasted $2.48, and revenue of $1.8 billion, under the anticipated $2.07 billion. Nonetheless, Deutsche Bank raised its price target for Ferrari to 460 from 450 and maintained a Buy rating. Deutsche Bank said earnings exceeded expectations by 6% on a measure tied to a robust product mix and stronger personalization options.
Takeaway
The combination of stronger-than-expected margin guidance and analyst target increases underscores continued bullish assessments among some sell-side firms, even as quarterly EPS and revenue missed forecasts. The market's sharp, positive response to the guidance suggests investors placed significant weight on the margin outlook and management's confidence in the order book, while valuation metrics indicate the stock is trading at a premium.