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F1: Ferrari’s (NYSE:RACE) SF21 Launch and Testing “Looking Pretty Good” (Video)

#Ferrari #SF21 #F1

$RACE

Mattia Binotto believes Ferrari’s straight-line speed is “not any more a disadvantage” after giving its new F1 power unit a 1st extended run-out in testing last wk.

In Y 2020 the Scuderia struggled with both a draggy car and a poor performing power unit, making its straight-line speed a particular weakness.

The F1 Team worked hard over the Winter to resolve the issues, with an all-new power unit, aka engine, designed and built ahead of the Y 2021 season in a bid to recover that issue.

Ferrari F1 Chief Binotto reported last month that the initial data from the dyno runs of the new engine was encouraging, but wanted to reserve judgement until it had been used on-track.

After the 2.5 days of pre-season testing in Bahrain last wk, Boss Binotto said Ferrari could see a noticeable gain in its straight-line speed compared to last yr.

We know how the engine is running at the dyno, but when you fit it on the car, what you may have a look on-track is the speed, and eventually the relative speed to the others,” Boss Binotto said when asked about Ferrari’s engine gains.

When we were here last year in Bahrain for the race in qualy, we’ve been very slow here on the straights. We did not enter into Q3, and we were very distant from Pole.

Now, if I look at the data, I think at least on the speed, on the straight, the speed is alright. There does not seem to be such a disadvantage as it was last year.

“We know it is not only power, it is drag of the car as well, as we often said last year. But let me say that fixing] both contributed in improving our speed on the straights.

Today we feel it is not any more a disadvantage.”

Ferrari driver Charles Leclerc felt there were “promising signs” coming from the SF21 car after his 1st runs last wk.

Ferrari focused on developing the rear of the car under the frozen regulations for Y 2021, with Boss Binotto reporting that the initial data was correlating well with what the team had expected from its own simulations.

I think what was more important for us is to understand the correlation with the wind tunnel and the simulations, so gathering data and comparing.

We are pretty happy with the correlation, which means we have got a good baseline at least for the next simulations or eventually developments.

Correlation was a Key factor in those days. So far it is looking pretty good

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 195.81 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 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 191.65 and the Key resistance is at 197,97 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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