Ferrari NV (RACE - Get Report) has overtaken its former parent Fiat Chrysler Automobiles NV (FCAU - Get Report) in market cap by more than $2.2 billion, Bloomberg reported.

Ferrari, which split off from Fiat Chrysler in January 2016, has a market value of $20.89 billion. Fiat Chrysler's market cap is about 11% smaller at $18.63 billion.

The gap between the companies is set to widen, according to brokerages including UBS Group AG, Banca IMI SpA and Banca Akros SpA, which have all increased their price target for Ferrari by 25% or more.

Fiat Chrysler shed one-third of its market value with Ferrari's spin-off, according to Fortune. The move put Fiat Chrysler's challenges into the spotlight without the cushy revenue from Ferrari's high-end cars, which were 12% of Fiat Chrysler's revenue in 2014.

A growing debt pile and product delays became the focus for Fiat Chrysler. The company also proposed a cost-cutting merger with General Motors (GM - Get Report)  but was turned down after multiple attempts. 

At the same time, Ferrari began to market itself as a luxury car brand a cut above other sports car makers. Because Ferrari sold a luxury good into a wealthy market in limited supply, it could increase the number of cars it sold without cannibalizing its own profit, the Motley Fool said. As the number of people who can afford a Ferrari grows, the company is ramping up output without needing to lower prices closer to the mass market. 

Ferrari reported strong second quarter earnings last week and released plans to expand its fleet of luxury vehicles, possibly to include a roomier four-seater to its line of high-performance sports cars.

Ferrari stock traded up 0.43% Tuesday morning to $111.03 per share. Fiat Chrysler shares were down 0.74% to $12.02.

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