Ferrari (NYSE:RACE) to introduce some of the upgrades it intended to bring to the Hungarian Grand Prix at F1’s 2nd race in Austria at the weekend.
F1 came back in style at the Austrian Grand Prix, sans the unwelcomed #BLM (Black Lives Matter) Marxist terrorists political statement from MercedesAMG, and taking a knee by 16 of the 20 drivers.
Ferrari’s racer changes were not supposed to be ready for the Austrian races. The car that raced and came 2nd Sunday was effectively the same as the 1 the Scuderia used in the final days of preseason testing.
Having seen the lack of pace in its Y 2020 car, Ferrari will bring forward as many upgrades as it can for Austria so it can do a like-for-like comparison to the testing-spec car at the same circuit.
A Scuderia press release sent Monday said: “Charles Leclerc’s extraordinary second place finish certainly has not lessened the rigour applied to the judgement of the performance of the Scuderia’s package for the start of the season.
“The SF1000 did not measure up, even compared to expectations ahead of the event. Because of this, development has already been going on at full pace for some time. This is in the hope of bringing forward to next weekend the introduction of the aerodynamic package scheduled for the Hungarian Grand Prix or, at least, some of its components.
“It is not that these new parts are expected to completely bridge the gap compared to the front of the grid. But the progress in terms of lap time could allow the team to move up the order and put the drivers in a better condition to be able to display their talent. Moreover it’s about checking that the chosen direction of development is the right one, precisely because it will be possible to do a true back-to-back on every upgrade.“
Ferrari CEO Louis Camilleri praised the team for reacting so quickly to address the problem.
“The only solution is to react, and I am pleased by the immediate reaction and the work that Mattia Binotto, team Boss and all his team are putting in at every level,” CEO Camilleri said. “This is not just to bring to the track today what was scheduled to be ready tomorrow but also to speed up the programme of development for the coming races.
“This is the response of a united team which is rolling up its sleeves and facing the problems head on, without crying about it. We are at the start of a new cycle with a long-term plan. Any setbacks will certainly not change our chosen course, and I have any confidence in Mattia and the team in addressing our shortcomings.”
Our overall technical outlook is Bullish in here, as all Key indicators are Bullish to Very Bullish as it approaches its all time highs at 179.21 marked on 18 February 2020.
Ferrari (NYSE:RACE) finished Monday at 176.0, +3.85 in NY just shy of its all time highs.
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.
Have a healthy day, Keep the Faith!