Analysts stay upbeat despite record Ferrari stock slump

Ferrari shares have plunged to record lows this month after cautious long-term forecasts rattled investors, but analysts remain confident in the company’s luxury appeal and long-term fundamentals. Many now see the decline as a temporary correction rather than a sign of weakness.

Ferrari NV shares are enduring their worst month since the company’s 2016 Milan listing, falling 16% in October and 15% in a single day after the carmaker forecast a modest 5% revenue growth by 2030, Bloomberg reports. Yet, 75% of analysts still rate the stock a “buy,” showing continued confidence in the luxury automaker.

Experts view the market’s reaction as excessive, comparing Ferrari more to Hermès and LVMH than to traditional carmakers. Morgan Stanley highlighted the brand’s “exclusiveness bordering on the unattainable,” while UBS called the selloff a “buying opportunity.”

Following the drop, Ferrari trades at a P/E of around 34, above Porsche’s 21 but below Hermès’ 45. Analysts at HSBC expect margins to recover and earnings to grow steadily by 2026.