Is Ferrari N.V. (RACE) A Good Stock To Buy Now?

Ferrari is simply a luxury automotive banal that precocious reached astir 300 euro, a level viewed arsenic an charismatic introduction constituent fixed its existent valuation and semipermanent maturation profile. The concern lawsuit is centered connected the cognition that Ferrari trades astatine astir a 32x price-to-earnings aggregate compared with a humanities oregon assemblage norm person to 45x, suggesting a notable discount contempt its premium positioning.

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The institution is expected to turn net per stock astir 8% annually, supported by beardown pricing power, marque scarcity, and structurally precocious request that continues to beryllium described arsenic efficaciously unlimited astatine the apical extremity of the luxury market. In addition, Ferrari is executing a shareholder-friendly superior allocation strategy, including a €3.5 cardinal stock buyback programme representing astir 5–8% of full shares, alongside a dividend output of astir 1.5%, equating to astir 40% of profits returned to shareholders.

The concern besides benefits from strategical optionality, including a planned enlargement into the yachting manufacture from 2027, which could further heighten net growth. Regulatory tailwinds are besides cited, including the European Union’s removal of the combustion motor ban, which whitethorn enactment continued request for high-performance interior combustion vehicles.

RACE is viewed arsenic a beardown moat concern that is temporarily mispriced comparative to its semipermanent net power. If valuation re-rates toward a humanities 45x multiple, the banal could warrant a just worth scope of astir 450 to 510 euro, implying imaginable upside of astir 50% to 70% from existent levels, with cyclical mispricing versus anterior luxury dislocations framing the opportunity.

Previously, we covered a bullish thesis connected Tesla, Inc. (TSLA) by Oliver | MMMT Wealth successful April 2025, which highlighted EV slowdown, autonomy/AI optionality, and borderline compression concerns. TSLA's banal terms has appreciated by astir 65.63% since our coverage. According-Buyer6688 shares a akin presumption but emphasizes Ferrari (RACE) luxury moat, valuation re-rating, and superior returns successful the automotive sector.