Ferrari (NYSE:RACE) has shut its Maranello factory including its F1 operations in response to the global coronavirus pandemic.
With Italy being 1 of the countries in Europe that has been impacted the most by the virus outbreak, the Italian government has imposed a strict lockdown across the entire nation to try to limit community transmission.
While some businesses were allowed to continue operating, Ferrari has found its road car division unable to maintain production because of supply chain issues.
In a statement issued by the iconic Italian manufacturer, it said that production in Maranello and Modena would cease immediately until 27 March, with the F1 team also suspending operational activities.
Staff will be able to continue working remotely from home.
Ferrari CEO Louis Camilleri said: “At a time like this my gratitude goes first and foremost to Ferrari’s men and women who, with their tremendous commitment over the past few days, have demonstrated the passion and dedication that defines our marque.
“Together with our suppliers, they have ensured the company’s production. And it is out of our respect for them, for their peace of mind and those of their families that we have decided on this course of action.
“Our clients and fans are also top of mind for us at this time, as we prepare for a strong restart.“
HeffX-LTN overall technical outlook for RACE is Neutral to Bearish, there is Key resistance 167.46 and support is 141.43, 1 of my Key indicators the RSI has turned Bullish as the stock is very oversold in here.
Ferrari finished at 142.29, or +12.29 Friday 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 and siding with BAML to 230 long term for now.