Ferrari Stock (RACE) Upgraded Leading Into Capital Markets Day

Ferrari's stock (NYSE:RACE) has been given a boost following an upgrade from HSBC, as anticipation builds for the company's upcoming Capital Markets Day. The stock is currently priced at $490 in pre-market hours, up 3.12% in the last week.

The upgrade from HSBC, moving Ferrari from a “Hold” to a “Buy” rating comes alongside a hike in its price target to €470, up from €413. This outlook is largely based on expectations surrounding Ferrari's Capital Markets Day, scheduled for October 9th.

The firm believes the event will showcase a clear path for double-digit earnings growth extending to 2030, supported by increased volume potential and opportunities in personalization, including new state of the art facilities.

Deutsche Bank also signaled confidence in Ferrari's strategic direction by upgrading the stock to a “Buy” rating prior to the Capital Markets Day. Deutsche Bank analysts are forecasting ambitious mid-term targets, including adjusted EBIT margins potentially exceeding 30%, and a substantial €3 billion share repurchase initiative.

The market is keenly awaiting announcements from the Capital Markets Day. BofA Securities anticipates that Ferrari will raise its FY25 guidance and possibly unveil a new electric vehicle (EV) concept, along with a potential dividend increase or share buyback plan.

A key component of Ferrari's strategy, according to analyst Horst Schneider, involves carefully balancing volume growth with strategic price increases, projecting approximately 9% earnings growth and 12% free cash flow growth between 2024 and 2030.

Ferrari's financial performance in Q2 2025 demonstrated core earnings growth of 6%, driven by strong pricing power and favorable market dynamics, especially in the Americas. The company also announced the eighth tranche of its multi-year share repurchase program, allocating €360 million as part of its broader €2 billion buyback initiative. This buyback program reflects management’s strong belief in the company's financial strength and future prospects.

A key highlight of the Capital Markets Day is the expected unveiling of Ferrari's first fully electric vehicle. This EV is one of six new models planned for launch this year, marking a pivotal step in Ferrari's electrification strategy.

However, recent reports suggest a delay in the release of the second fully electric vehicle until at least 2028, attributed to weaker-than-anticipated market demand for high-performance luxury EVs. This decision reflects a measured approach to electrification, balancing the need for innovation with prevailing market conditions.

The confluence of positive analyst ratings, strong financial performance, and strategic initiatives leading into the Capital Markets Day is driving market optimism around Ferrari. While the delayed EV timeline presents a minor headwind, the potential revelations regarding future earnings growth, EV strategy, and capital allocation are expected to affirm the stock's bullish trajectory. The markets are keenly watching the upcoming event, which will be pivotal in shaping the company's valuation for the foreseeable future.