Ferrari (NYSE:RACE) Undervalued, Outlook Bullish
Ferrari (NYSE:RACE) is among the world’s leading luxury brands focused on the design, engineering, production and sale of the world’s most recognizable luxury performance sports cars.
The Ferrari brand symbolizes, exclusivity, innovation, state-of-the-art sporting performance and Ital Design.
Its history and the image enjoyed by its cars are closely associated with its Formula 1 racing team, Scuderia Ferrari, the most successful team in Formula 1 history.
Ferrari was spun off from Fiat-Chrysler (NYSE:FCAU) in October 2016, and is gaining a following among investors, as Ferrari has no peers in the automotive world, as it is valued as a luxury firm, and trades 5.5X higher than many other automakers.
Profitability is among the highest of auto makers, with 10-yr EBITDA margins matching Porsche and 62% higher than BMW.
The Big Q: Should Ferrari NV be considered an automotive manufacturer or a manufacturer of luxury products?
My answer is as a manufacturer of luxury products.
As Enzo Ferrari said, “The Ferrari is a dream, people dream of owning this special vehicle and for most people it will remain a dream apart from those lucky few.”
Notably, Ferrari is the auto manufacturer which produced the most expensive car ever sold at auction: the $36-M 1957 Ferrari 335 S Scaglietti Spyder. This model was offered as a Limited Edition of 4.
Ferrari also holds the record for the most expensive car ever sold. According to the available information, a 1963 Ferrari 250 GTO holds that record, carrying a $52-M price in a private treaty transaction.
This type of branding is unequaled in the automotive sector. And brand loyalty is the envy of all automakers, approximately 70% of Y 2015’s sales were to individuals who already owned a Ferrari.
|NYSE:RACE||48.41||12 August 2016||0.36||48.36||48.6||48.26||313,000|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.33)||Bullish (0.44)||Bullish (0.40)||Neutral (0.15)9|
Have a terrific week.
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