Rangers are set to open their Europa League campaign on Thursday night when they host Real Betis in a Group C game at Ibrox.
Sparta Prague and Aris Limassol are the other two teams who make up the rest of Group C in the Europa League.
Ferguson believes given the relative strength of the teams, Rangers must aim to finish second and move to the next stage of the Europa League.
The Rangers legend does not believe it is a very hard group and thinks none of the teams can be considered a top European team, which should give the Glasgow giants a chance to progress.
The former Rangers captain said on the Go Radio Football Show: “I’d expect Rangers to finish second.
“When you look at the teams – Betis, Prague and Limassol – they are not the strongest of teams.
“If I was Rangers, I’d expect second place and I would be looking to get second place.”
Rangers were in the final of the Europa League just a little over a year ago but not many are expecting Michael Beale’s side to have such a dream run this season.
