Ferrari (NYSE:RACE) Upgrades Guidance Across the Board


Ferrari (NYSE:RACE) upgraded guidance across its Key financial metrics for the full year ahead, beyond its “2020 plan“.

The iconic Italian company now sees net revenues above €4.1-B, representing an 8.5% increase compared to the F-Y 2019 revenues of €3.776-B result.

Ferrari investors are more Bullish on its Y 2020 growth and earnings outlook than management’s estimates. A Key reason is the notion that Ferrari is being conservative by under-promising to eventually over-deliver. Which is its way.

From CEO Lewis Camilleri: While we view 2019 is very much a transition year, 2020 will be a year of consolidation. I say this for several reasons. While we unveiled five key models during the course of 2019, actual in market deliveries for most of those models will occur over the second to 3rd quarter as we ramp up production.

Source: Ferrari NV

Ferrari is looking ahead to its expanded product lineup and introduction of next-generation hybrid models including the ramp-up in production of the Stradale launched in Y 2019. 

Ferrari estimates that hybrids will represent 60% of the vehicles by Y 2022 supporting an increase in the average retail price given the expected product mix. Ferrari is cautious about Electric Vehicles.

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 Bullish, there is resistance at 169.07, and Key support is solid at 164.19, the stock has established strong long term support. The MACD is Very Bullish in here

Ferrari finished at 168.80, +0.92 Thursday in NY.

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 and siding with BAML to 230 long term for now.

Stay tuned…