Ferrari's Q3 Performance Boosted by High Demand for Purosangue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Should l Buy RACE?
Source: NASDAQ.COM
Ferrari's Purosangue Performance: The Purosangue SUV has become a key growth driver for Ferrari, showcasing the brand's ability to expand its portfolio while maintaining exclusivity and profitability, contributing significantly to the company's strong third-quarter performance.
Porsche's Electrification Strategy: Porsche is focusing on its SUV lineup, particularly with the upcoming Macan EV, as it aims to lead in the high-performance electric SUV market while balancing innovation and profitability.
Aston Martin's Sales Challenges: Aston Martin's DBX SUV, intended to broaden the brand's appeal, has struggled to meet sales expectations due to execution issues and market competition, highlighting difficulties in the ultra-luxury SUV segment.
Ferrari's Stock Valuation: Ferrari's shares have decreased by 4.6% this year, and the company is currently trading at a premium P/E ratio compared to the industry average, holding a Zacks Rank of #3 (Hold).
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RACE is 448.83 USD with a low forecast of 349.74 USD and a high forecast of 555.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 333.790
Low
349.74
Averages
448.83
High
555.00
Current: 333.790
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ferrari Earnings Announcement and Market Expectations
- Earnings Release Date: Ferrari is set to announce its FY earnings on February 10 before market open, with consensus EPS estimate at $10.55 and revenue at $8.41 billion, indicating strong investor interest in the company's financial performance.
- Performance Exceeding Expectations: Over the past year, Ferrari has beaten both EPS and revenue estimates 100% of the time, showcasing its robust performance and sound financial management in the luxury automotive market.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward and four downward revisions, while revenue estimates experienced six upward and seven downward revisions, reflecting market uncertainty regarding the company's future performance.
- Rating Changes: Despite its high valuation, HSBC has downgraded Ferrari's rating, suggesting that catalysts for growth may take time to materialize, indicating that investors should approach short-term market fluctuations with caution.
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High-Volume Earnings Reports This Week from Tech and Consumer Sectors
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Ferrari Initiates €3.5 Billion Share Buyback Program
- Buyback Program Launch: Ferrari has initiated the first tranche of its €3.5 billion share buyback program announced on December 16, 2025, purchasing 54,500 shares between January 26 and 30, 2026, with a total investment of €15,374,530, demonstrating the company's confidence in its stock value.
- Transaction Details: During this first tranche, Ferrari repurchased shares at an average price of €282.10, indicating proactive capital management amid market fluctuations, aimed at enhancing shareholder value and boosting market confidence.
- Shareholding Update: As of January 30, 2026, Ferrari held 16,837,806 treasury shares, representing 8.68% of total issued shares, reflecting a stable capital structure during the buyback process.
- Long-term Strategic Planning: The multi-year buyback program is expected to execute approximately €3.5 billion by 2030, showcasing the company's strong confidence in future growth and its commitment to enhancing shareholder returns through ongoing capital repurchases.
See More
Ferrari: A Unique Investment Opportunity in Luxury and Scarcity
- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
See More
Ferrari Earnings Announcement and Market Expectations
- Earnings Release Date: Ferrari is set to announce its FY earnings on February 10 before market open, with consensus EPS estimate at $10.55 and revenue at $8.41 billion, indicating strong investor interest in the company's financial performance.
- Performance Exceeding Expectations: Over the past year, Ferrari has beaten both EPS and revenue estimates 100% of the time, showcasing its robust performance and sound financial management in the luxury automotive market.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward and four downward revisions, while revenue estimates experienced six upward and seven downward revisions, reflecting market uncertainty regarding the company's future performance.
- Rating Changes: Despite its high valuation, HSBC has downgraded Ferrari's rating, suggesting that catalysts for growth may take time to materialize, indicating that investors should approach short-term market fluctuations with caution.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Ferrari Initiates €3.5 Billion Share Buyback Program
- Buyback Program Launch: Ferrari has initiated the first tranche of its €3.5 billion share buyback program announced on December 16, 2025, purchasing 54,500 shares between January 26 and 30, 2026, with a total investment of €15,374,530, demonstrating the company's confidence in its stock value.
- Transaction Details: During this first tranche, Ferrari repurchased shares at an average price of €282.10, indicating proactive capital management amid market fluctuations, aimed at enhancing shareholder value and boosting market confidence.
- Shareholding Update: As of January 30, 2026, Ferrari held 16,837,806 treasury shares, representing 8.68% of total issued shares, reflecting a stable capital structure during the buyback process.
- Long-term Strategic Planning: The multi-year buyback program is expected to execute approximately €3.5 billion by 2030, showcasing the company's strong confidence in future growth and its commitment to enhancing shareholder returns through ongoing capital repurchases.
See More
Ferrari: A Unique Investment Opportunity in Luxury and Scarcity
- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
See More
