Ferrari N.V. (RACE): A Bull Case Theory

We came across a bullish thesis on Ferrari N.V. on Pillars And Profits’s Substack by Soren Peterson. In this article, we will summarize the bulls’ thesis on RACE. Ferrari N.V.'s share was trading at $386.93 as of December 1st. RACE’s trailing and forward P/E were 37.66 and 34.36 respectively according to Yahoo Finance.

Ferrari (NYSE: RACE), with a market capitalization of $74.58 billion, stands as one of the most iconic and profitable luxury brands globally and remains a long-term “growth” favorite among investors. In 2024, the company delivered a 36% total shareholder return, reflecting its ability to combine exclusivity, pricing power, and operational excellence. Exor, Ferrari’s largest shareholder, trimmed its stake during the year to reduce portfolio concentration but continues to hold a leading position.

Ferrari’s financial performance remains exceptional, with a 48% return on equity in 3Q25 and an adjusted operating margin of 28.3% in 2024—levels that underscore its superior profitability and disciplined execution. Management remains confident in sustaining high margins while scaling production selectively to preserve brand equity. The company continues to balance tradition and innovation by maintaining its iconic internal combustion engine lineup while embracing electrification trends through the introduction of new hybrid and electric models.

Additionally, its racing division continues to generate significant brand value and incremental revenue, reinforcing Ferrari’s identity as both a luxury and performance leader. With unmatched brand strength, consistent financial outperformance, and a measured transition toward the future of mobility, Ferrari is well-positioned to sustain robust earnings growth and shareholder returns.

Previously we covered a bullish thesis on Tesla, Inc. (TSLA) by Oliver | MMMT Wealth in April 2025, which highlighted challenges in deliveries and margins while focusing on long-term potential in AI and energy. The company’s stock has appreciated approximately by 84.37% since our coverage as the growth thesis played out. Soren Peterson shares a similar view but emphasizes Ferrari’s strong profitability and disciplined electrification strategy.

Ferrari N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held RACE at the end of the second quarter which was 51 in the previous quarter. While we acknowledge the potential of RACE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Ferrari N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held RACE at the end of the second quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of RACE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering