Performance exceeding expectations boosts market confidence Ferrari NV (RACE.US) shakes off the last "sell" rating.

After the performance announced this week exceeded expectations, Ferrari NV (RACE.US) has finally rid itself of the last "sell" rating in the market. Citigroup, which has been bearish on the stock for a long time, raised its rating from "sell" to "hold," ending its negative view on this supercar stock over the past two years. Boosted by better-than-expected quarterly performance, 2026 operating targets, and gradually improving delivery pace of the F80 supercar, Ferrari NV's stock price surged 10% on Tuesday and continued to rise on Thursday. Previously, the company's long-term outlook given in October last year had disappointed some investors, but the latest information has somewhat alleviated market concerns. Citigroup analyst Harald Hendrikse stated in a report on Thursday, "Although we still see some issues ahead, the logic for shorting the stock may have come to an end at this stage. We believe that investors may return to this stock in the near future." However, Citigroup also emphasizes that there has not been a substantial improvement in Ferrari NV's fundamental prospects. Hendrikse pointed out that this week's earnings report was "highly unusual" because the performance exceeded the guidance given by the company during discussions with analysts just in January. He believes that Ferrari NV may choose to accelerate the delivery pace of the F80 in the fourth quarter of 2025 and in 2026 to boost profit margins in the short term, but this may come at the cost of future growth slowdown. "It is difficult to judge what has changed since January," he wrote, bluntly stating that management is "supporting stock performance by protecting the profits of the 2026 fiscal year." Ferrari NV, on the other hand, emphasized that the company is more focused on the structural advantages of its product portfolio and has not disclosed specific sales data for individual models. In response, a spokesperson for Ferrari NV told the media, "Ferrari NV has always emphasized that it will also consider achieving controlled growth long-term goals when planning delivery schedules and controlling product portfolios." Furthermore, analysts from Bernstein and Citigroup both pointed out that Ferrari NV hinted during an analyst call last month that profit margins in 2026 may see a slight decline due to the impact of a stronger dollar and concentrated launch of new models. Bernstein analyst Stephen Reitman wrote in a report published on January 8 that Ferrari NV mentioned at that time that it has considerable flexibility in the delivery pace of the F80 supercar, "if necessary, it is completely possible to allocate more vehicles for delivery in the fourth quarter of 2026."