Ferrari (NYSE:RACE) Stock Outperforms in FY 2017
$RACE, $F, $GM, $FCAU
In Y 2016, Ferrari (NYSE:RACE) outperformed legacy automakers and the broader market with 21.1% returns.
YTD it has also been terrific for the Italian luxury Supercar maker too.
As of 14 July, Ferrari stock has delivered over 60% YTD positive returns.
On a YTD basis, Ford (NYSE:F) has lost about 5.4% while General Motors (NYSE:GM)) and Fiat Chrysler (NYSE:FACU) have 1.9% and 26.2% YTD gains, respectively.
Last July about this time I called Ferrari significantly higher on the year on its breakout at 40/share
According to the published data so far this month of July 12, 56% of analysts covering Ferrari have given it “Buy” recommendations. Another 22% have recommended a “Hold,” while the remaining 22% expect Ferrari to drop and have given it “Sell” recommendations.
Ferrari’s consensus 12-month target price was 79.30, which is already about 17% lower than its market price of 93.90.
10 analysts currently cover Ferrari including me, my call is for 100/share near to medium term.
Italian-American auto giant Fiat Chrysler spun off Ferrari as a separate entity on 20 October 2015 when it was listed on the NYSE with an oversubscribed IPO.
In Y 2016, Ferrari’s V12 engine Supercar sales fell, which concerned some analysts and investors, as V12 engine Supercars generate higher profits for the company as compared to its V8 engine vehicles.
In Q-1 of Y 2017, Ferrari revived its V12 car sales. Plus, the company reported a 6.4% Y-Y rise in its global shipments in Q-1. A continuation of this positive trend in the company’s shipments will likely keep investors’ optimism alive in 2-H of Y 2017.
|NYSE:RACE||93.9||14 Jull 14-2017||1.14||92.74||94||92.41||513,500|
|HeffX-LTN Analysis for RACE||Overall||Short||Intermediate||Long|
|Bullish (0.38)||Bullish (0.27)||Bullish (0.38)||Very Bullish (0.50)|
Have a terrific weekend.