Ferrari (NYSE:RACE) Trading at All-time Highs

Ferrari (NYSE:RACE) Trading at All-time Highs

Ferrari (NYSE:RACE) Trading at All-time Highs

$RACE

Ferrari N.V. (NYSE:RACE) through with its subsidiaries, designs, engineers, produces, sells luxury Supercars and HyperSupercars along with luxury collateral branded good under license and in partnership with top tier firms.

The company sells racing cars, engines and parts, as well as after sales, repair, maintenance, and restoration services for its cars. Further, it licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods.

Also, the Maranello outfit’s theme parks and resorts, Ferrari World and Ferrari Land, are operating in Abu Dhabi, the UAE and on the Spanish riviera, near Barcelona.

Additionally, the company provides direct or indirect finance, and leasing services for the purchase of cars to retail clients and dealers; and manages its company owned race tracks.

And perhaps most importantly Ferrari is the most Iconic and Winningest team in the top tier of Motorsports, Formula One, and the world’s most recognized automotive brand.

Ferrari N.V. Price and Consensus

Slowing auto sales are weighing down on the conventional auto manufacturing industry, yet the iconic Italian Supercar maker, has risen 107% since last June, while the sector as a whole has only seen a 13.83% annual return.

In the last 3 months RACE has returned 31.79% compared to the sector return of -3.35%. The company is trading much higher than many analysts’ valuations.

Ferrari’s shares are currently trading over 14% Morningstar’s sell price at 74.25, and 10% over Yahoo! Finance (really Yahoo finance?) 1-year estimat of 77.76.

Some critics and investors are wonder if there room left in this Black Stallion’s  run, and if so just how much some profit taking begins. According to my work, the resistance is NIL.

Notably, I called Ferrari in July of last year are 74 before any of the rest of the pack. And my current target is 100/share.

Ferrari is not a car company in the normal sense of the word, it should not included in the automotive sector, but the luxury goods sector where valuations can run in the mid to high 30X earnings. Hence the 100/share call.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 85.7 25 May 2017 0.61 85.12 85.76 85.12 383,100
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Very Bullish (0.65) Very Bullish (0.60) Very Bullish (0.62) Very Bullish (0.71)

 

Stay tuned…

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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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