Ferrari (NYSE:RACE) Breaks Above Most Analysts Targets

Ferrari (NYSE:RACE) Breaks Above Most Analysts Targets

Ferrari (NYSE:RACE) Breaks Above Most Analysts Targets

$RACE

Shares of Ferrari (NYSE:RACE) have broke out above the average analyst 12-month target price of 119.00, finishing Thursday at 119.52/share on moderate volume of 295,032 shares exchanged.

When a stock reaches the target an analyst set, there are just  2 ways to react: downgrade on valuation, or, re-adjust their target price to a higher mark.

Analyst reaction also depend on the fundamental business developments responsible for driving the stock price higher, and if things are looking up, it is likely time for the target to be raised.

There are 5 market analyst’s targets contributing to that average for Ferrari.

There are analysts with lower targets than the average, including one looking for a price of 100.00, and there is 1 analyst has a target as high as 135.00. The standard deviation is 15.572/share.

My call when RACE was at about 95 last year and I learned of the SuperFUV and SuperEV models when from 120 to 200/share. This is not included in the ‘average’ I am ahead of the crowd and have been since the breakout in July 2016, at 40/share.

The reason to look at the average RACE price target is to tap into the “Wisdom of the Crowd”, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just 1 particular expert like me believes.

So,  with Ferrari crossing above that average target price of 119.00/share, investors in in the Top performer in the world’s automotive sector have been given a signal to further assess the Maranello outfit and deciding for themselves.

The Big Q: Is 119.00 just a stop on the way to an even higher target price, or has the valuation gotten stretched to the point where it is time to think about taking some money off the table?

Note: The trend is your friend, and Ferrari is the Top performer in the automotive sector by a very wide margin. Plus all of my Key technical indicators are Very Bullish in here.

The Big A: Below is a table showing the current thinking of the 5 market analysts that cover Ferrari:

Recent RACE Analyst Ratings Breakdown
Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 3 3 3 3
Buy ratings: 0 0 0 0
Hold ratings: 1 1 1 1
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 1 1
Average rating: 2.2 2.2 2.2 2.2

The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 119.52 18 January 2018 0.07 119.42 119.89 118.88 295,032
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.40) Bullish (0.30) Very Bullish (0.65) Bullish (0.26)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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