Ferrari’s latest financial numbers point to an end to investor unease after it seemed the glory money-making days might be over for this purveyor of magnificent machines to the rich and famous.

Ferrari shares have been in the doldrums since last fall. The company has made a habit of under-promising and over-delivering on its financial forecasts. But this time its conservative forecast went too far. Fears that the good times might be over slashed 15% from the share price and since then the shares have been bumping along the basement of a fall of about 35%.

Investors were also worried that the launch of Ferrari’s first electric vehicle in May, the Luce, might not only be a huge financial flop, but might signal it was surrendering its leadership to the likes of Lamborghini, McLaren or Aston Martin. This followed massive losses generated by many of the world’s biggest carmakers as they scrambled to produce EVs at huge cost, that buyers didn’t want.

Over the last year, the world’s mass carmakers have absorbed between $55 billion to $65 billion in combined financial losses and write-downs. This included Stellantis ($26.5 billion), Ford ($19.5 billion) General Motors ($7.6 billion), and Volkswagen and its Porsche subsidiary ($6 billion).

In the event, the Financial Times reported late last month that Ferrari had already met 2026’s sales target for the Luce. The FT said Ferrari hadn’t officially revealed the target, but according to sources, this is just under 500. Luce prices start at €550,000 ($634,000). A month earlier, Reuters reported that Ferrari denied forcing clients to buy a Luce before acquiring more traditional in demand vehicles. Ferrari sells about 14,000 vehicles a year.

Luce, and Ferrari’s long-term strength

Despite this news, Frank Schwope, automotive consultant and lecturer at FHM Berlin, has doubts about Luce’s future, and Ferrari’s long-term strength.

“As Luce has shown, the shift to electric vehicles could pose a serious problem for Ferrari. Furthermore, more and more people might start asking themselves why they should pay several hundred thousand euros for a Ferrari when they can get Chinese products for significantly less,” Schwope said in an email exchange.

“It remains to be seen how strong Ferrari’s brand really is—and whether that strength is sustainable,” Schwope said.

News Ferrari reported second-quarter adjusted earnings before interest, taxes, depreciation and amortization well ahead of analysts forecast at €755 million ($870million), combined with guidance for 2026 of at least €2.97 billion ($3.4 billion), led to an upward spurt in the share price. More good news included strong demand for the limited edition €3.6 million ($4.2 million) F-80, a 1,200 hp hybrid, and for top versions of the Purosangue SUV.

Berenberg Bank of Germany said it had expected a big improvement in Ferrari’s finances by the third quarter, but second quarter numbers reinforced its long-term thesis early.

“While some investors will continue to search for holes in the thesis, we believe this was a clear and decisive beat on price/mix and personalization, with call commentary that, we believe, stages the upgraded guidance as a floor.” Berenberg Bank said in a report.

Bumpy road for Ferrari shareholders

“It has been a bumpy road for Ferrari shareholders the past 12 months. We believe there is a clear setup for double-digit earnings growth in 2027 and upside to current consensus.”

“We expect strong results for the remainder of the year on price/mix and personalization, and catalysts in the form of two new model announcements, which should precede a 2027 earnings inflection that will be a standout in the automotive and luxury sectors,” Berenberg Bank said.

Investment researcher Bernstein, which rates Ferrari “Outperform” with a target price of $460 (€399), said thanks to its order book, now filled to the end of next year, the company has an unprecedented visibility to its prospects.

“Limited exposure to China, the progressive de-risking of Luce concerns, further proof points surrounding Ferrari Supercar developments, and our increased conviction that Ferrari could raise guidance again at the 3Q26 stage have collectively boosted our confidence in Ferrari’s earnings power,” Bernstein said in a report.

Berenberg Bank maintained its “Buy” rating and raised its price target to €384 from €381. Ferrari shares closed Friday at €356.25 compared with a 52-week low of €269.

The bank said it was bullish on Ferrari because –

  • A set of new products that excite the base including the 12 Cilindri Manuale, plus two new models, of which one likely will be another ICE variant unveiled in November.
  • Hybrid residuals are stabilizing
  • Dealers are the most constructive they have been in 12 months
  • Price/mix and personalisation are driving results
  • A clear and unique earnings inflection in 2027 supported by supercar volumes.