Ferrari (NYSE:RACE) Expected To 2X Profits by 2022

Ferrari (NYSE:RACE) Expected To 2X Profits by 2022

Ferrari (NYSE:RACE) Expected To 2X Profits by 2022

$RACE

Ferrari (NYSE:RACE) the Italian luxury Supercar maker predicted last week that its profit will 2X by Y 2022, as it reported earnings for Y 2017 ahead of its current plan.

Ferrari said EBITDA profits in Y 2017 rose 18% to EUR 1.04-B ($1.3-B), besting  EUR 1-B ($1.2-B) 2 years earlier than it predicted when it spun off from Fiat-Chrysler (NYSE:FCAU) in October 2015..

Ferrari said it plans to double core earnings to EUR 2-B ($2.5-B) by Y 2022 and be debt free by Y 2021. CEO Sergio Marchionne is set to retire from leading FCA at the end of this year, but will remain at the wheel of Ferrari until Y 2021.

Ferrari sold 8,398 Super and HyperSuper cars  in Y 2017, led by 12-cylinder models like the GTC4Lusso and the 812 Superfast, and expects this to rise to more than 9,000 in Y 2018.

Some analysts are wary of plans for Ferrari to raise sales too quickly worrying this might dilute the exclusive brand, not likely, as it is the Top brand in the world’s automotive sector by several laps.

Plans to launch an SUV by Y 2021 increased these doubts, although Mr. Marchionne has said this will be accomplished in a style unique to Ferrari.

When Ferrari was floated, analysts worried that as a car maker, it was valued unrealistically highly, as though it was more like a luxury goods maker. But as its value on the stock market has powered ahead, they are not worrying so much now.

The Maranello outfit is unique in the sector, Ferrari is an Aristocrat stock, it pays dividends, and always makes its marks.

Ferrari is trading just below its 52 wk high of 130.35/share notched last Friday

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 127.14 2 February 2018 -1.05 130.35 130.63 126.76 1,395,400
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.45) Very Bullish (0.51) Bullish (0.35) Very Bullish (0.50)

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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