Ferrari (NYSE:RACE) says that accepting the delay to the introduction of the new Y 2021 regulations has likely put it at a disadvantage to its rivals, but it had to do so for the sake of F1.
In the wake of the coronavirus pandemic upending the F1 season schedule, and teams likely to face huge financial pressure with a cut in prize money and sponsor incomes, the sport’s bosses moved to make drastic changes over recent weeks.
Following discussions between teams, the FIA and F1, it has been agreed that the current generation of cars will be used for next year as well; with a major rules revamp put back until Y 2022.
But the Scuderia’s Boss, Mattia Binotto has made it very clear that it is more important that Ferrari backed efforts to try to save smaller teams than focussing on its own competitive chances.
We will see if that holds up when the season begins.
HeffX-LTN overall technical outlook for RACE is Neutral, there is Key resistance 167.47, and support is 148.42, 2 of my Key indicators have turned Very Bullish as the stock is very oversold. Technically, it is Neutral with a Bullish bias.
Ferrari finished at 148.45, -4.12 Wednesday in NY, and 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 healthy day, stay home?