Expect the Ultimate SUV, aka FUV, from Ferrari (NYSE:RACE)

Expect the Ultimate SUV, aka FUV, from Ferrari (NYSE:RACE)

Expect the Ultimate SUV, aka FUV, from Ferrari (NYSE:RACE)


Ferrari’s CEO Sergio Marchionne 1st mentioned in August that Ferrari NV (NYSE:RACE), the Fiat-Chrysler spinoff Mr. Marchionne also leads, would likely build a Ferrari badged sport utility vehicle (FUV).

Monday, CEO Marchionne said that Ferrari will spend about 2.5 years deciding how and how many to produce.

Rolls-Royce and Bentley also have SUV models.

Prices range from $300,000 for the Bentley Bentayga, and $330,000 for the Rolls-Royce Cullinan.

An August motorsport mag report noted: that “we can be pretty confident” that Ferrari would build an SUV based on its GTC4Lusso, a 2 door, 3, counting the back,  station wagon, or a similar design. The GTC4Lusso carries a base price tag of $305,000.

Figure a Ferrari FUV to come with an even higher price tag, maybe even more than the Rolls-Royce.

That gives the company an entry into a market that is expected to account for 67 of the auto industry’s expansion through Y 2024.

SUVs are particularly popular in the United States and China, the world’s 2 largest new car markets and high-end SUVs are among the most popular versions.

Such a vehicle would also give a sharp boost to Marchionne’s plan to 2X Ferrari’s profit by Y 2022.

Ferrari’s stock trades in a 52-wk range of 50.39 – 118.10. The consensus 12-month price target on the stock is 109.57. Monday in New York it finished at 114.83, +2.23 (1.98%).

HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.26) Bullish (0.33) Neutral (0.21) Bullish (0.25)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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