Ferrari NV (RACE) experienced a significant 5.11% surge intraday, reflecting strong positive investor sentiment. The luxury automaker's stock has been recovering from a previous sell-off, with the latest movement indicating renewed market confidence.
The stock's upward momentum is primarily driven by the successful debut of Ferrari's first pure electric vehicle, the Luce. The company confirmed that all 1,600 initial prospective customers decided to purchase after viewing the physical car, with partial payments already received. The Luce's pricing of 550,000 euros aligns with Ferrari's premium positioning, and market concerns about potential dilution of brand exclusivity have eased following the launch.
Adding to the positive sentiment, Morgan Stanley raised its price target on Ferrari to $438 from $388, while analyst Edouard Aubin reiterated a Buy rating and increased the price target to €380, citing mispriced multiple compression and strong brand demand. A UBS research note also indicated that the electric model represents a complementary extension of Ferrari's existing lineup rather than a fundamental shift in brand strategy.