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

Core Thesis - Ferrari N.V. is viewed positively due to its strong brand, profitability, and strategic approach to electrification, making it a long-term growth favorite among investors [2][3][4] Financial Performance - As of December 1st, Ferrari's share price was $386.93, with a market capitalization of $74.58 billion [2] - The company achieved a 36% total shareholder return in 2024, showcasing its ability to maintain exclusivity and pricing power [2] - In Q3 2025, Ferrari reported a 48% return on equity and an adjusted operating margin of 28.3% in 2024, indicating superior profitability [3] Strategic Positioning - Ferrari balances tradition and innovation by maintaining its internal combustion engine lineup while introducing hybrid and electric models [3] - The racing division contributes significantly to brand value and revenue, reinforcing Ferrari's identity as a luxury and performance leader [4] Shareholder Dynamics - Exor, Ferrari's largest shareholder, reduced its stake to decrease portfolio concentration but remains a significant holder [2] - At the end of Q2, 43 hedge fund portfolios held Ferrari shares, down from 51 in the previous quarter, indicating a slight decline in hedge fund interest [6][7]