“At the recent AGM Ferrari shared the firm’s future strategy to announce a new range of Supercars“– Paul Ebeling
Ferrari (NYSE:RACE) conducted its AGM where it outlined the plans to introduce 3 new Supercars in the coming months. The Maranello Outfit confirmed that there will be an all-electric Ferrari by Y 2025.
Now though, it is preparing to debut the Purosangue FUV in Y 2022.
The iconic Italian Supercar maker said, “As a company, we have committed to achieving full carbon neutrality by direct and indirect actions within this decade.” Ferrari has already equipped a few cars with hybrid powertrains such as La Ferrari and La Ferrari Aperta as well as SF90 Stradale and SF90 Spider.
“As we enter 2021, we continue to roll out our ambitious and exciting product plan and we will unveil a further three new models in the coming months.”
A new plan includes focusing on emerging car markets.
“We believe we have the potential for further success in new geographies, in particular China. But also, more generally in Asia.”
Ferrari explained that the transition from internal combustion engines to hybrid or electric cars is very costly. But, the company is analyzing the trend and customer feedback and will respond as the situation develops. Stay tuned…
Ferrari is The Aristocrat of the automotive sector.
Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.
Ferrari closed Tuesday at 209.85 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.
Key technical indicators have turned Very Bullish. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key support is strong at 209.64 and the Key resistance is at 214.53 at the close Tuesday in NY.
Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.
UBS is now calling the stock at 365. Citi downgraded the stock from Neutral to sell. I have not seen any other Street downgrades.
Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.
Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.
I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.
Ferrari has an average rating of Buy and a consensus target price at 243.60.
The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC Thursday.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term, the Top on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen.
The stock is considered defensive in the sector.
Have a healthy day, Keep the Faith!