Ferrari (NYSE:RACE) may well be priced accordingly already, but the carmaker’s position as a luxury firm means it could be viewed as a “safe haven”, Barclays analysts have noted.
Following second-quarter results showing a 35% rise in pre-tax earnings to €427 million, alongside a near-three percentage point rise in margins to 27.9%, Barclays noted Ferrari (NYSE:RACE)’s performance had been strong but that the shares are evenly weighted.
The bank raised Ferrari’s share price target from €265 to €300 - implying a prospective jump of 5.5% - while also suggesting next year’s earnings would be higher than originally anticipated on the back of the carmaker's own guidance hike for 2023.
“In the context of a likely ‘peakish’ European automotive sector, we think Ferrari is the only relative safe haven in our coverage,” Barclays noted.
“In other words, we view Ferrari as a luxury company that happens to make cars.
“Unless Ferrari trips up operationally, which is very unlikely, in our opinion, we see very low risk of correction, especially relative to the European automotive sector.”
Despite dubbing the stock a sound bet, Barclays acknowledged that Ferrari shares are currently well priced, suggesting a better entry point could be awaited.
“Sceptics on Ferrari will say that it is priced for perfection already,” the bank added.
Shares in Ferrari were trading 1.1% lower at €281 on Friday.