Bank of America is telling clients to look past the near-term noise at Ferrari and focus on what it sees as a still-strong 2027. In a note released ahead of the automaker's third-quarter 2026 results, due November 3, the bank said it has “high confidence” in the company's setup for next year, even as some profit metrics cool from the second quarter.
The call is essentially about pricing power. BofA expects Ferrari's average selling prices to rise about 10% year over year, driven by a richer model lineup and stronger sales in higher-priced markets. That's notable because it comes even as the bank expects deliveries to dip slightly, weighed down by tough year-ago comparisons and ongoing model ramp-ups.
What's behind the pricing strength?
Ferrari has long been known for its ability to command premium prices, and that appears to be continuing. The company's strategy of offering more exclusive, higher-margin models—and limiting production to keep demand high—has helped it consistently raise prices without hurting sales. BofA's forecast suggests that dynamic is still intact.
The bank made only small tweaks to its forecasts. It raised its earnings per share estimates for 2026 and 2027, but trimmed its 2028 view. That's a sign that the near-term story is about pricing and mix, not volume growth. In other words, Ferrari is expected to make more money per car, even if it sells slightly fewer of them.
Margins, however, are expected to cool from the second quarter. That's not unusual for a company in the middle of launching new models, as initial production costs tend to be higher. BofA's view is that this is a temporary blip, not a sign of a broader slowdown.
Why this matters for investors
For everyday investors, the key takeaway is that Wall Street still sees Ferrari as a company with strong pricing power and a healthy long-term outlook. Even with some near-term margin pressure, the bank's confidence in 2027 suggests that the luxury carmaker's business model remains resilient.
Ferrari is often viewed as a “luxury” stock, meaning it's less tied to the broader economy than mass-market automakers. Its customers are less sensitive to interest rates or inflation, which gives the company more stability. That's part of why analysts tend to focus on pricing and model mix rather than unit sales.
Investors will get a clearer picture when Ferrari reports its third-quarter results on November 3. The market will be watching not just the headline numbers, but also management's comments on 2027 guidance, order books, and the pace of new model launches.
BofA's note is just one analyst's view, but it's a useful signal. When a major bank expresses “high confidence” in a company's future, it often reflects a broader sentiment on the Street. Still, investors should remember that analyst forecasts can change, and past performance isn't a guarantee of future results.
What to watch next
Beyond the November 3 report, investors will be keeping an eye on Ferrari's delivery numbers and any updates on its electrification strategy. The company has been rolling out hybrid and fully electric models, and how those are received will be a key driver of future pricing and margins.
Also worth watching is how Ferrari manages its order book. The company has historically had a waiting list for many models, which gives it pricing power. If that order book remains strong, it would support BofA's view that 2027 will be a solid year.
For context, other companies have also been reporting strong results recently. For example, Unilever's sales beat showed resilience in consumer staples, while Santander's profit beat highlighted strength in banking. But Ferrari's situation is unique because it's about luxury and pricing power, not volume.
In the end, BofA's note is a reminder that even when a stock is expensive, the underlying business can still be strong. For investors, the question isn't just whether Ferrari will hit its numbers—it's whether the market has already priced in that strength. That's something to consider as the November 3 report approaches.
