The Automotive Market Has Gone into the Deep Freeze Except for Ferrari (NYSE:RACE) the Sector’s Aristocrat


The Hot automotive market began to cool in November. With good sales, but was down from Y 2018.

Hang on, Y 2019 was not all bad for the sector’s Aristocrat, Ferrari.

The Maranello Outfit sold and 10,131 cars, and made a record profit on each 1 of them, too, according to a new report from Fiat Group World, an unaffiliated Fiat Chrysler Automobiles website.

The website reported that Ferrari sold 10,131 cars with a 23.2% operation margin on each, which comes out to $94,474 at current exchange rates. That is a lot of money, though a bit under what the iconic Italian Supercar maker made in Y 2018 $94,947.

Ferrari (NYSE:RACE) achieved its strong margins by adopting new technologies, adapting to market changes, and marketing its cars.

Ferrari had a big year in Y 2019, even if profit margins did contracted a bit. It was the 1st time the Supercar maker sold more than 10,000 vehicles, earning a net revenue of EUR 3.766-B, +10.1% Y-Y. Europe, the Middle East, and Africa were the company’s best-selling regions. Sales dipped in only the Americas. Ferrari expects Y 2020 to be quieter with fewer model introductions an the brief factory closure due to the coronavirus, the factories in Modena and Maranello will reopen on 14 April, all of Ferrari’s production is spoken for and the health crisis has not caused any cancellations, not 1 .

We will wait to see how that plays into the company’s profitability and guidance. The company’s shareholder meeting will be held on 16 April in Amsterdam and the information will be reported here.

Ferrari is the Aristocrat of the automotive sector.

The Maranello Outfit will hold its annual shareholders meeting 16 April in Amsterdam.

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 Key resistance 167.47, and support is 154.84, 1 of my Key indicators turned Very Bullish, our overall technical outlook is Bullish at the week ended 9 April 2020.

Ferrari finished at 157.04, +3.03 Thursday in NY, 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.

Have a happy healthy Easter and Passover weekend, stay home, Keep the Faith!