Ferrari NV has finally shaken off the last 'Sell' rating in the market following the release of better-than-expected earnings this week. Citigroup, a long-time skeptic of the stock, upgraded its rating from 'Sell' to 'Hold', ending nearly two years of negative sentiment towards the supercar manufacturer. Bolstered by quarterly results exceeding expectations, its 2026 operational targets, and a gradually increasing delivery cadence for the F80 supercar, Ferrari's stock surged 10% on Tuesday and continued to climb on Thursday. The company's long-term outlook provided last October had disappointed some investors, but the latest information has somewhat alleviated market concerns.
Citigroup analyst Harald Hendrikse stated in a report on Thursday, "While we still see some issues ahead, the short thesis is likely over for now. We believe investors may return to the stock over the coming period." However, Citigroup also emphasized that it does not see a substantial improvement in Ferrari's fundamental prospects. Hendrikse noted that this week's earnings report was "highly unusual" because the performance exceeded the guidance that had just been lowered by the company during analyst communications in January. He suggested that Ferrari might choose to accelerate F80 deliveries in the fourth quarter of 2025 and into 2026 to provide a short-term boost to margins, but this could come at the cost of slower future growth. "It is difficult to judge what exactly has changed since January," he wrote, adding that management "is supporting the share price performance by protecting FY2026 earnings."
Ferrari, for its part, stated that it focuses more on the structural advantages of its product portfolio and does not disclose specific sales figures for individual models. A Ferrari spokesperson commented to media, "Ferrari has always emphasized that while planning delivery cadence and controlling the product mix, it also considers the long-term goal of achieving controlled growth." Furthermore, analysts from both Bernstein and Citigroup pointed out that during last month's analyst call, Ferrari hinted that 2026 margins could see a slight decline, influenced by a strong US dollar and the concentrated launch of new models. Bernstein analyst Stephen Reitman wrote in a report dated January 8th that Ferrari had indicated it possesses considerable flexibility in the delivery schedule for the F80 supercar, noting it is "entirely possible to schedule more vehicles for delivery in Q4 2026 if needed."
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