Ferrari (NYSE:RACE) a Bullish ‘Battleground’ Stock
$RACE, $FCAU, $F
Ferrari (NYSE:RACE) is an issue that I am strong on. On the 60 open the stock was an easy short, but as the subsequent decline bottomed, many analysts turned Bullish on a valuation basis.
Ferrari is not a “me-too” car company and it deserves a much higher multiple than Fiat Chrysler (NYSE:FCAU) or Ford (NYSE:F).
That Ferrari a an iconic luxury brand deserves a premium is not a debate but how much of a premium is and so Ferrari continues to be battleground stock.
All of my Key technical indicators are Bullish to Very Bullish with a 56.50 price target mid-term
|NYSE:RACE||50.12||27 September 2016||-0.22||50.08||50.65||49.87||352,100|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.31)||Neutral (0.17)||Very Bullish (0.50)||Bullish (0.25|
We are about a month from Ferrari’s next Quarterly report, and the stock has been preforming very well into the event.
We can see from the chart that RACE has spent the last 4 months or climbing in a straight line after it hit the February low at 32. the stock bounced back into the low 40’s extending to its present mark.
Since, then, Q-2 Y 2016 very strong meaning that demand for the stock is coming from elsewhere. That is the tricky part because Ferrari is not a startup it is a $10-B iconic company that primarily gets its revenue from Supercars and expanding into full luxury brand.