Ferrari's (RACE) organic growth outlook remains strong despite concerns around the potential impact of its all-electric Luce model on brand equity and future order intake, UBS Securities said in a Monday note.
Nearly 70% of dealers across key markets reported increased customer inquiries, while a high proportion cited resale values as an important factor in purchasing decisions, the firm said.
UBS expects Q3 organic sales growth of 8%, with cars and spare parts also up 8%. Volumes are expected to decline about 1% year over year as the company continues its model transition and gradually ramps F80 deliveries, the firm said.
The firm said investors will focus on the Amalfi order book, the mix of new and existing customers in Luce orders, F80 delivery timing, personalization growth and strength in residual values.
UBS reiterated its buy rating on Ferrari and lowered its price target to $450 from $490.
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