Ferrari (NYSE:RACE) will run the same specification race car that it ran at the end of testing in February at this weekend’s season-opening Austrian Grand Prix, perhaps giving rivals MercedesAMG and Red Bull Racing, who both have upgrades ahead of the 1st race an advantage.
Ferrari was the 3rd-quickest team testing preseason and said that its car’s performance was below its expectations. In this situation Ferrari says it has scrapped its original race car updates to focus on more significant changes for Hungary.
“This weekend the car will run in the same configuration used toward the end of the Barcelona tests,” Scuderia Boss Mattia Binotto said. “This does not mean we have been twiddling our thumbs in the very limited time of just 51/2 wks in which we were able to work on the cars because of the stringent procedures involved in working around the pandemic as well as the total shutdown of activities required by the FIA in agreement with the teams.
“The truth is that the outcome of the tests led us to take a significant change of direction in terms of development, especially on the aerodynamic front. First, we had to understand why we did not see the results we had expected on track and how much to recalibrate the whole program as a result.
“It would have been counterproductive to continue in the direction we had planned, knowing that we would not have reached our goals. Therefore, we decided to come up with a new program that looked at the whole car, knowing that not all of it would be ready for the first race. Our aim is to introduce the updates at the third race on 19 July at the Hungaroring.
“Apart from that, over and above the actual development of the car itself, these past few weeks we have worked a lot on analysing its behavior, with simulation work and with the help of our drivers, and I think that will prove its worth in Austria.”
Rivals MercedesAMG and Red Bull Racing are bringing significant upgrades to this opening race/ The MercedesAMG upgrade is believed to be worth as much as 0.3-0.4sec, and Red Bull Racing has not only aerodynamic updates but also a new engine from Honda.
Boss Binotto said, “We must try and be perfect in everything we do, in preparing for every session and in how we carry out our tasks. The aim? To bring home as many points as possible, as is always the case in fact.“
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 Wednesday at 171.94, +0.93 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!