F1: Ferrari (NYSE:RACE) Needs a Win at Spa This Weekend


F1 is back now for a run of 9 races in 14 weeks all around the globe. This racing starts at this weekend’s Belgian Grand Prix and takes the season to its conclusion in Abu Dhabi on 1 December.

In that frame there is a lot to sort out; some scores to settle, recoveries consolidated and under-achievement to be rectified, the line-up of next year’s grid to determine, the future of the sport to be secured and, a championship to be won.

The Big Q: Can Ferrari finally get a win?

This season has been a disappointment for Ferrari (NYSE:RACE), who expected to challenge for the title but have been hammered by MercedesAMG and have not yet won a race.

It would be astonishing in some ways if the team ended the year without a victory, but with only 9 chances remaining, an unconvincing performance so far, and Red Bull Racing-Honda very much in contention, it is a possibility.

For Ferrari, then, that the next 2 races present them with their best chances to win for the rest of the season.

The Belgian and Italian Grands Prix are a week apart and both are on classic, high-speed circuits where straight-line speed is Key to overall performance. They are both power-sensitive and Ferrari’s engine has the most power and the car the best straight-line speed on the grid.

Ferrari start both Spa and Monza weekends as favorites, and the races present a Golden opportunity for Sebastian Vettel and Charles Leclerc to finally post that 1st win of the year, and in Mr. Leclerc’s case, of his career.

If Ferrari can finally grasp rather than miss an opportunity, as they have done in every case 1 has presented itself this year we will the Scuderia on the Top step of the podium, the Q is which driver will it be?

Mr. Vettel is ahead in the championship, but Mr. Leclerc has been impressive.

Mr. Vettel has a point to prove.

The 4X world champion should have had his own win, which he lost to a driving error and subsequent controversial penalty in Canada in June, his experience should give him the edge overall. We shall see, tune in here.

Ferrari is the Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Neutral to Bearish, overhead resistance is at 161.79 and support at 157.39 all Key indicators are flashing Neutral to Bullish in here. Ferrari finished at 158.16, -2.23 Wednesday in NY.

Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (-7.5% since July 16) as a good entry point in here.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.

Stay tuned…