Home 2022 F1: Ferraris (NYSE:RACE) Finish 2-3 at Jeddah

F1: Ferraris (NYSE:RACE) Finish 2-3 at Jeddah

by Paul Ebeling

#Ferrari #F1 #Jeddah #GrandPrix #Leclerc #Sainz #Perez #Verstappen

$RACE

“Charles Leclerc said, “every race should be like this” despite losing the Saudi Arabian GP to Max Verstappen”--Paul Ebeling

Ferrari’s Charles Leclerc was keeping Red Bull’s Perez honest at the start, before inheriting the lead thanks to a fortuitously timed Safety Car. From there, he looked in control, but a late VSC helped Max Verstappen in P2 to close the gap. From there, Mr. Leclerc defended hard, losing and retaking the lead 2X before it was 3rd time lucky for Mr. Verstappen. As for Carlos Sainz, he managed to keep Mr. Perez at bay but did not have an answer to the speed of the 2 frontrunning racers.

Charles Leclerc, 2nd

“Although I’m disappointed to lose the victory so late in the race, it feels good to be fighting for wins again. Whenever I had a bit of margin to Max (Verstappen), I could manage the race well. But after the Virtual Safety Car, as soon as he got in the DRS range, it became difficult.

“He was fast in the straights and I was fast in the corners. You have to play on your strengths as much as possible when it’s this tight. I regained my position twice but the third time it did not work out. I could have possibly had another opportunity if it weren’t for the yellow flag at the end of the race, but that’s part of the game. It was a really fun battle!

“I hope it stays this close for the coming races. It’s exciting to watch and to drive like this. Development will be key and we have to push hard.”

Carlos Sainz, 3rd

“I had a very good launch at the start but I ran out of space on the right and Max got better traction on the inside line.

“From then on, the race was quite straightforward, even though I would have expected to have been given back the position ahead of Checo (Perez), as I came out of pit lane ahead of him, while the Safety Car was still out. Having to wait for the restart to get back to third meant I could not try and fight for second place

“P3 is a good result and overall, this has been a fairly positive weekend, definitely better than one week ago in Bahrain. I feel we are going in the right direction with this car and I’m sure it’s just a matter of time before we are fighting a bit further up the order. We have a clearer picture of where and what we need to improve and we have a direction to follow. I can’t wait to go to Australia after two years without racing there.”

Mattia Binotto, Team Principal and Managing Director

“This evening, we were all treated to a great show with two strong drivers fighting for the win. In the end, it didn’t go our way, but once again we were competitive. It’s been a great start to the season, with 78 points scored over the two races, out of a possible total of 88. That’s definitely a significant figure and we can be pleased about it.

“Charles and Carlos both did well and were clear thinking, especially at the key moments, which helped in bringing home as many points as possible. A few incidents affected the outcome, but having said that, congratulations to Max and Red Bull who were very strong today. We move on from a positive weekend and head for the next two rounds in Melbourne and Imola, where we will try to get the most out of our car.”

For the official F1 race highlights, click here.

Ferrari is The Aristocrat of the automotive sector.

Ferrari is 1 of the most recognizable brands in the world, even becoming the world’s strongest luxury brand in Y 2021, according to Brand Finance. Its Brand Strength Index scored 93.9 pts out of 100 and has a brand strength of AAA+.

Ferrari is among Morgan Stanley’s Top stock picks for Y 2022, ranking 1st on the Adam Jonas-led team’s list of favorite EV stocks for 2022. The stock has replaced General Motors as Morgan Stanley’s top pick this year. Ferrari designs, engineers, produces and sells luxury performance sports cars, and is a prospective big player in the EV sector.

Analyst Adam Jonas at Morgan Stanley holds an Overweight rating on Ferrari shares as well, as of January 2022.

Our overall technical outlook is still Bullish, all 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 finished Friday at 213.34 within its 52 wk range of 127.73 – 275.30 in NY, down from its all time closing high at 275.30 on 22nd November.

Our Key technical indicators have turned Very Bullish, as the stock is very oversold in here. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key resistance is at 237.13, the Key support is at 209.35, the stock is very oversold in here.

Societe Generale places a Street high price target of $290 on RACE as compared to the average sell-side price target at 195.93. Most Street analysts still do not know how to view Ferrari.

Morgan Stanley called out $RACE a “sleeper” EV play as the firm can justify more than 100% of the company’s value with its ICE business. MS’s new price target of $350 reps more than 35% Northside potential for shares and is above the average analyst 1 yr target is at 208.64.

MS automotive analyst says, “Longer term, we see scope for Ferrari to offer a range of EV products at potentially higher prices than the average selling price of today’s Ferrari, while leveraging economies of scale on higher volumes.

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, an 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. 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 208.29.

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 call on the Street, and adjusting it to 250/share short term.

A number of large investors have recently bought shares of RACE, and Ferrari continues to buy back its stock in here.

The stock is considered defensive in the sector.

Have a happy, prosperous week, Keep the Faith!

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