BofA Confident in 'Strong FY27 for Ferrari; Price Objective, Estimates Revised

01:20 PM EDT, 10/28/2026 (MT Newswires) -- BofA Global Research expressed "high confidence" in Ferrari (RACE.MI) seeing a "strong" 2027 amid expectations that the Italian luxury carmaker will report robust financial results when it releases its third-quarter 2026 earnings report on Nov. 3. "We make only modest estimate changes ahead of the release: slightly higher for FY26/27 and lower for 2028. We expect ASPs to surprise positively again, rising 10% y/y on favourable product and country mix, while volumes should decline on tough comparables and ongoing model ramp-ups. Our Q3 EBIT-margin estimate of 29.7% is slightly ahead of consensus at 29.5%, but below Q2's 31.2%, reflecting a higher share of range models, rising D&A related to the Luce launch and higher SG&A. The key debate is guidance," the research firm said Wednesday. "We remain confident in Ferrari's 12-month outlook and reiterate our BUY rating." Analysts noted that Ferrari's earnings visibility is already high as it heads into 2027, supported by stronger sales of the company's F80 and Special Series sports car models. Against this backdrop, EPS estimates for 2026 and 2027 were upwardly revised, while that for 2028 was reduced. Meanwhile, the stock's price objective was trimmed to 395 euros from 400 euros, mainly driven by a lower valuation for luxury sector peer Hermès International (RMS.PA).