Morgan Stanley just got even more bullish on Ferrari

Since its 2015 spinoff from Fiat Chrysler Automobiles, Ferrari stock has performed exceptionally well: up 50% since the IPO and up a whopping 92% over the past 12 months.

Morgan Stanley auto analyst Adam Jonas has been a Ferrari bull since last year, and he just got more bullish.

Last November, he hiked his price target to $US60 from $US56 and later raised in to $US72. In a note published on Monday, he pushed that number to $US100.

Ferrari shares closed at $US82 last Friday.

Jonas, a longtime Tesla bull, likes Ferrari so much that he has bumped Tesla from his top three picks in the auto sector to make room for the Italian manufacturer of exotic supercars. According to Morgan Stanley, Jonas “believes [Ferrari] can double its earnings in approximately five years, and he sees investors growing to appreciate the stability of its cash flows over the long term.”

The analysis makes sense. Ferrari has been gradually upping production since the IPO, from a longtime former cap of 7,000 vehicles per year. Over the next few years, 10,000 isn’t out of the question. Ferrari always has more demand than it can meet — by design — and it is both looking to expand in developing markets such as China and the Middle East while also offering profitable versions of its most expensive vehicles, like the $US1-million-plus LaFerrari hypercar.

Ferrari was trading down slightly pre-market on Monday to $US81.79.

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