RACE Stock Alert: Ferrari Beats Out Tesla as Morgan Stanley’s Top Auto Stock

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Could Ferrari (NYSE:RACE) stock race ahead today? It’s possible. An expert on Wall Street just chose Ferrari over Tesla (NASDAQ:TSLA) as his top auto industry pick. This news may shock some financial traders, but the analyst has a few reasons for putting Ferrari in the pole position.

Ferrari is known worldwide for its fast and fancy cars. However, the financial community wouldn’t typically select Ferrari over seemingly almighty electric vehicle (EV) innovator Tesla.

Morgan Stanley analyst Adam Jonas just made a surprising announcement, though. Reportedly, Ferrari, not Tesla, is the firm’s top pick among automobile manufacturers.

Jonas has an interesting rationale for choosing Ferrari. Whereas Tesla and EV makers in general can be risky and susceptible to hype cycles, Ferrari is a relatively defensive name. Thus, RACE stock may be a better bet amid these geopolitically and economically uncertain times.

What’s Happening With RACE Stock?

So, are today’s traders buying shares of Ferrari like hot cakes? Not really, although RACE stock is up by half a percent this morning. Right now, the stock is calmly holding the $272 level.

That’s not a huge share-price move, but there may be more action over the coming hours and days. After all, Morgan Stanley maintained its “overweight” rating on Ferrari. The firm also raised its price target on shares to $310.

It’s interesting to consider that RACE stock, of all things, could be a defensive asset. Yet Jonas presents a compelling argument.

In particular, the analyst cited Ferrari’s “strong fundamentals” and asserted that the automaker “has levers to pull for both growth or downside protection, within a wide dispersion of macro outcomes.” Perhaps, then, there’s a stability and predictability to Ferrari that can’t be found with Tesla.

Granted, the market isn’t making a big move with RACE stock at the moment. But there’s still time for Ferrari to pull into the fast lane in the wake of Jonas’ bullish commentary.

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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