On Monday, RBC Capital adjusted its financial outlook on Ferrari NV (NYSE:RACE:IM) (NYSE: RACE), increasing the price target to €463 from the previous €380, while keeping an Outperform rating on the stock. The revision reflects the potential growth opportunities for Ferrari in the electric vehicle (EV) sector.
The company's strategy to manage its order book effectively is a key factor supporting its revenue growth per unit. This management of orders is crucial as it directly influences the residual values of vehicles, which in turn affects the pricing and mix of new car sales.
Ferrari's focus on personalization is also seen as a lever to enhance profit margins. According to RBC Capital, this approach allows the luxury car manufacturer to increase margins without the necessity to expand production volumes significantly.
The analyst's comments underscore the importance of EVs in Ferrari's future growth trajectory. The ability to control order books and residual values positions Ferrari to capitalize on the burgeoning EV market while maintaining its exclusivity and high-end market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.