F1: Ferrari (NYSE:RACE) ‘Unlocks’ SF90’s Power Across the Board


Ferrari’s (NYSE:RACE) SF90, with the new higher downforce package, leap forward being able to retain Top Speed advantage relative to Mercedes.

This came as a surprise to MercedesAMG’s Silver Arrows, whose Spec-3 update failed to live up to expectations and requires that it operates below its upper thresholds in order to hold on to reliability.

Ferrari held the trump card in terms of outright power, added more performance with its new specification power unit in Italy and continued to exploit it in the subsequent races.

The impressive thing: it has been able to unlock performance across the board, giving the upper hand during the race and another marginal boost in performance for qualifying too.

Charles Leclerc, 21 anni, has reaped the reward of this qualifying boost, taking 4 Pole positions in the last 4 races, indicating that there is margin to be gained from setup and driving style.

The most important factor, and perhaps 1 that is being overlooked, is that the aerodynamic update implemented by Ferrari means the team is now able to trigger tire performance in a way it could not before. It appears that The Scuderia was unable to generate enough heat in the front tires before thus reducing tire performance and lifespan relative to its competitors.

It would also appear that Ferrari’s overall concept, taking into account the change in aerodynamic regulations for Y 2019, had not accounted for Pirelli’s thinner gauge rubber, the tire supplier reducing the tread by 0.4mm, as it did for several rounds in Y 2018. The updates introduced in Singapore sought to overturn its lower speed weaknesses, but even Ferrari did not think the car would respond as well as it actually has.

Here are the changes that boosted Ferrari’s form; click on the arrows to scroll through the images…

Ferrari (RACE) rating Buy  

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 151.98, and support at 145.28 as 1 Key indicator is Very Bullish in here. Ferrari finished at 149.44, +2.54 Thursday 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 since late July 16 has provided 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

Have a terrific weekend…