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F1: Ferrari (NYSE:RACE) Has Blown Away the 2020 Season Dark Clouds

#Ferrari #SF21 #F1

$RACE

Charles Leclerc says Ferrari (NYSE:RACE) has blown off the “strange” atmosphere at the team from early Y 2020 when it came to terms with its F1 struggles.

Ferrari heads into this season looking to recover from its worst campaign in 40 yrs as only got 6th in the constructors’ championship last season, scoring only 3 podium finishes.

The 2020 season dark clouds

At first there was a strange atmosphere at first in 2020 where we realized the reality of things, that it was quite a lot worse than what we expected,” Mr. Leclerc said when asked about the atmosphere at Ferrari. “There was a time where it was not great. But very quickly the mentality changed and there was a huge motivation to try and come back to where we want to be, (after the Vettel issues were finished).

“I think this did not change for this year. With Carlos, he is bringing experience from other teams too, that he’s very interesting and that he’s also giving us new worlds to explore.

“So this is very interesting, but I guess the mentality of the team itself is still as motivated as last year and is really willing to push to have better things and better days coming soon.

Ferrari is encouraged by its performance with the new SF21 car through testing last wk in Bahrain, with team boss Mattia Binotto declaring that straight-line speed was no longer a disadvantage heading into the 2021 season.

Asked about the team’s performance gains through pre-season testing, Boss Binotto said he was pleased with how the data was matching up with Ferrari’s expectations at the factory.

“I think we’re pretty happy with the correlation, which means we have got a good baseline at least for the next simulations or eventual developments.

Correlation was a key factor in those [test] days. So far at least, it is going pretty well.”

Ferrari is The Aristocrat of the automotive sector.

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

Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.

Ferrari closed Friday at 197.06 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.

A Key technical indicator has turned Very Bullish. Ferrari’s stock is still very oversold in here, but the pattern still indicates the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key support is strong at 196.76 and the Key resistance is at 210.84 at the close Friday in NY.

Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.

UBS is now calling the stock at 365. Citi downgraded the stock from Neutral to sell. I have not seen any other Street downgrades.

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 its call to 270 long term.

I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.

Ferrari has an average rating of Buy and a consensus target price at 243.60.

The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC Thursday.

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 250/share short term.

A number of large investors have recently bought shares of RACE, and there have been very few stances of insider selling over the past yr that we have seen.

The stock is considered defensive in the sector.

Have a healthy weekend, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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