Ferrari (NYSE:RACE) Beats, Shares Break Out

Ferrari (NYSE:RACE) Beats, Shares Break Out

Ferrari (NYSE:RACE) Beats, Shares Break Out


  • Ferrari’s 2017 earnings beat expectations.
  • The iconic Italian carmaker said it would 2X earnings by Y 2022.
  • Shares breakout marking 52 week trading highs

Ferrari (NYSE:RACE) has been on a Bull run since its October 2015 IPO (initial public offering), and the carmaker expects continue in the fast lane.

Thursday, the Maranello outfit reported strong F-Y 2017 earnings, and with EBITDA at EUR 1.04-B were in line with our expectation, breaching the EUR 1-B mark 2 years earlier than forecast at the time of its IPO

The Italian Supercar is not holding back on it projections.

Ferrari forecast to 2X core earnings to 2-B Euros ($2.5-B) no later than 2022 and become debt free a year earlier, betting on racy demand for its Supercars, HyperSuper cars, and new launches, including a planned FUV and EV.

The SUV has been all but officially announced as CEO Sergio Marchionne has teased details on previous earnings conference calls and more recently at the Detroit Auto Show in January.

With over 9,000 vehicles expected to be sold in Y 2018, all of them high priced luxury sports cars, supercars, or hypercars, the Ferrari utility vehicle, or FUV as we call it, has the potential to greatly increase the company’s annual output.

Thus leading to my early call of a 200/share price long term, that ahead of all other analysts covering Ferrari.

Currently, Ferrari shares are trading at: 126.98, +7.48, or +6.26% as of 10:05a EST, the market is open.

The stock is up about 100% in the past 12 months.

Overall, HeffX-LTN analysis for RACE is Very Bullish across the board

Stay tuned…

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