Ferrari (NYSE:RACE) Emissions, Sound Regulations Are Threatening the V12

Ferrari (NYSE:RACE) Emissions, Sound Regulations Are Threatening the V12

$RACE

Ferrari (NYSE:RACE) say the V12 could be in trouble.

In an interview recently Ferrari Chief Technology Officer Michael Leiters said tightening emission regulations and new sound rules are making life difficult for the 12-cylinder engine.

However, he says, the company is not abandoning the iconic powertrain yet even though the company is already packing smaller twin-turbo V8s into its cars. 

We will fight for this engine,” Mr. Leiters told reporter. Ferrari not only has to meet new Euro 6 regulations but also regulations in the US and China, too, which adds even more complexity.

The V12 will not disappear overnight, and, according to Mr. Leiters, Ferrari has the money and knowledge base to not only produce V12 engines that meet regulations, but also produce engines that pack the Big punch. 

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 Neutral to Bearish, overhead resistance is at 160.07 and support at 150.05 all Key indicators are flashing Bearish with a Bullish bias in here. Ferrari finished at 154.44, + +2.89 Thurssday in NY.

Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (9.0% since July 16) as a good entry point in here.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.

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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