Morgan Stanley auto analysts continue to be big fans of Ferrari NV (NYSE:RACE) and today raised their price target to $340 from $310, while reiterating the stock as their Top Pick in the sector.

The update comes as the analysts have also made some changes to their earnings model ahead of the luxury sports car maker’s second-quarter results – due on Wednesday, August 2, 2023.

The firm’s 2Q and FY23 EPS estimates were lifted to €1.68 (€1 = $1.0911) and €6.31, respectively, from €1.66 and €6.24 previously. Estimates were lifted as the firm’s variable margin assumption goes to 59% from 56% on price/mix.

Half of the price target hike is related to the firm’s new Euro/Dollar FX assumption of 1.10 from 1.05 previously. The other half was driven by the new estimates.

The firm’s bull case price target remains unchanged at $420.

Shares of Ferrari are up 44% year-to-date.