UBS Bullish Ferrari (NYSE:RACE) Ups Price Target
UBS Analyst Michael Binetti noted: “Despite beating Q-1 estimates and raising 2016 guidance, RACE’s stock has pulled back slightly due to: 1) a +7% stock run over the past month—suggesting that investors anticipated a guidance increase; and 2) the view that Q-1 was boosted by limited run Special Car sales that will be tough to sustain through 2016 and 2017. Q-2 revenue & EBITDA may indeed be pressured from a lower mix of V12 units—and we’re trimming our Q-2 estimate EBITDA accordingly (to €193-M from €203-M).
That said, we are raising our 2016 estimate to €805-M from €775-M based on several emerging 2-H tailwinds: 1) Accelerating TDF sales; 2) 3Q GTC4 Lusso launch; 3) Accelerating engine sales for Maserati Levante (forecasting +45% in 2-H Vs +5% in 1-H), 4) a Y-Y lift in personalization (TDF was designed to drive personalization above RACE’s 15% avgerage); and 5) €40-50-M in EBIT FX tailwinds in 2-H.”
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The 1yr consensus price target is 49.49 against a trading range of 31.66 -60.97
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Neutral (0.05)||Neutral (0.19)||Bearish (-0.25)||Neutral (0.22)|