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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