Ferrari (NYSE:RACE) will support a freeze on F1 engine restrictions starting in Y 2022, team Boss Mattia Binotto said Thursday, which enables Red Bull to use their Honda power units even after the Japanese manufacturer leaves the sport.
Honda (NYSE:HON) which exclusively supplies Red Bull and team AlphaTauri, is set to bow out of F1 at the end of the 2021 season leaving the 2 racer firms looking for a new supply.
Red Bull’s best option is to acquire the IP of the Honda power unit and continue using it for its 2 teams. But they have said that would only be financially viable if expensive engine development was frozen.
Ferrari had been against the move to freeze engines even as rivals Mercedes, who have won every championship since the current engine rules were introduced in Y 2014, have supported it.
But after meetings with the sport’s commercial rights holder and the governing FIA, Boss Binotto said The Scuderia had changed its mind provided the introduction of a new power unit, whose details are yet to be worked out, is brought forward a year from Y 2026 to 2025.
“At Ferrari we understand the situation,” Boss Binotto told reporters at the Bahrain Grand Prix in a video conference from Ferrari’s HQ in Maranello.
“We are supportive in trying to anticipate by 1 season, year, the freezing of the engines. That will mean as well trying to anticipate to 2025 the new regulations for the power units.“
Ferrari is The Aristocrat of the automotive sector.
Our overall technical outlook is Very Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November.
Ferrari finished trading Friday at 212.74 in NY. It’s all time high was marked at 215.48 marked intraday Wednesday, 18 November.
All technical indicators are Very Bullish there is Strong support at 199.16, there is no overhead resistance.
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, Morgan Stanley and Bank of America. UBS is now calling the stock at 365.
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 it call to 270 long term.
I have raised my long term target to 375, a Strong Bull call, the strongest on the Street.
Ferrari has an average rating of Buy and a consensus target price at 211.95.
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 am calling it 375 long term , the Top on the Street, and adjusting it to 230/share short term.
A number of large investors have recently bought shares of RACE. And there is no insider selling.
The stock is now considered defensive in the sector.
Have a healthy weekend, Keep the Faith!