Ferrari (NYSE:RACE) Drives Around C-19 Coronavirus Chaos

Ferrari (NYSE:RACE) Drives  Around C-19 Coronavirus Chaos

#Ferrari #RACE #earnings, #C19Coronavirus

$RACE

Ferrari (NYSE:RACE) has a defensive business model that has held up very well through past economic downturns.

If anything, the C-19 coronavirus chaos should be easier for Ferrari to navigate than past outlier events.

The Maranello Outfit’s customer base is holding up very well, and the other supercar companies have reported strong demand in their offerings.

That said, I believe upcoming Q-2 results will show that the company remains on pace, with virus disruptions already priced in.

The market is treating Ferrari favorably. Though it initially sold off at a similar rate to the broader market after peaking on 19 February, the stock has steadily recovered since the March bottom, and recently marked new all-time highs.

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

HeffX-LTN overall technical outlook for RACE is overall Very Bullish, the resistance is light at 187.23, Strong Support is at 180.74

Our overall technical outlook is Bullish in here, as all Key indicators are Very Bullish.

Ferrari finished at 181.02, -1.18 Thursday in NY, just shy of its intraday all time highs at 185.36 marked on 22 July 2020.

The Maranello Outfit’s 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 (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.

Have a healthy weekend, Keep the Faith!

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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 it 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.