Barclays downgrades its recommendation on Ferrari from 'overweight' to 'weighted in line', while raising its target price from 375 to 400 euros, ahead of the Italian luxury and sports car maker's next earnings release on May 7.

"As is often the case, Ferrari is managing expectations, suggesting that internal planning was below consensus for Q1 2024, while our mix model puts us 5% above consensus", says the broker.

Nevertheless, Barclays points out that the stock is now back on par with Hermès in terms of forward-looking 12-month P/E (price to EPS) ratio, and believes it "will probably continue to put the market on notice".

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