BofA Expects 'Strong Finish' from Ferrari in FY26; Buy Rating Maintained

06:41 AM EST, 12/05/2025 (MT Newswires) -- BofA Global Research expects Ferrari (RACE.MI) to issue another "conservative" initial outlook for full-year 2026, which the research firm forecasts will be gradually lifted throughout the year. "With the upcoming changes in CO2 regulation, it is hard to ignore the [original equipment manufacturers] despite structural challenges [remaining] in place. Ferrari is our top pick amongst OEMs since it has de-rated but has strong visibility on its orders, even though we expect the 2030 targets not to be raised before 2027. Expecting a slow start into 2026 with a strong finish towards end of the year," according to a 2026 outlook report published Thursday. The research firm anticipates the Italian luxury sports car manufacturer to guide for a "weaker" 2026 first half and a "stronger" latter half on the scheduled ramp-up of the F80 and the 296 Speciale in the second quarter. Sales of the F80 are expected to help counteract possible margin dilution from the October 2026 launch of the luxury battery electric vehicle, Elettrica. Analysts have a "more positive" outlook for full-year 2027, underpinned by the expected shipment of 300 F80 units, which they said could drive margins higher than anticipated and prompt an upgrade to the 2030 targets. However, BofA said its outlook is subject to the performance of the Elettrica. Concurrently, the research firm lowered its price objective for the buy-rated stock to 415 euros from 450 euros amid a discounted cash flow adjustment, noting it still sees "significant upside" from the current stock price. The 2026 assumptions were also trimmed, while the 2027 to 2030 estimates were "not impacted that much."