Home 2022 Ferrari (NYSE:RACE) in the New F1 Era

Ferrari (NYSE:RACE) in the New F1 Era


#Ferrari #F1


Ferrari team Boss Mattia Binotto explained why the reaction to F1’s new regulations will be Key as to whether the team can return to its winning ways in motorsport” –– Paul Ebeling

The Scuderia has been without a race win since the Singapore Grand Prix of 2019.

Speaking in a post-season media briefing Boss Binotto explained: “What will be important for us is to keep on growing, no doubt, and to further reduce the gap to the competitors.

I think the new regulations are a clear opportunity and the hope is to be competitive and, for me, to be competitive means being in a position to win races.

“Would that mean that we can fight for a championship? I think if I look at today, the gap is still big, but I think that certainly, as Ferrari, it’s part of our DNA.

“What is important is certainly to be capable of fighting at least in races for the pole positions and for the win.”

Ferrari endured its worst season since 1980 two years ago but bounced back well last year, beating McLaren in the ‘fight for third’ to finish behind only title rivals Red Bull and Mercedes.

Adding, “A deficit, again, is the simple consequence of continuous growing and improvement, and so I would be disappointed if we have not improved compared to this year.

“For me, not improving means, again, being back having a competitive car.

“It may be that [at] the start of the season, there will be a difference in competitiveness between the cars because of the way that each team may have interpreted the rules and solutions that you may bring.

Again, here what I think will be important as Ferrari is being capable of understanding weaknesses and addressing them very quick.

So it’s a team reaction which will be key because I think it will be wrong. I said we cannot be confident to have a competitive car in the very start because you never know what may be when you’ve got such a big change.”

Ferrari is The Aristocrat of the automotive sector.

Ferrari is 1 of the most recognizable brands in the world, even becoming the world’s strongest luxury brand in Y 2021, according to Brand Finance. Its Brand Strength Index scored 93.9 pts out of 100 and has a brand strength of AAA+.

Our overall technical outlook is still Bullish, all 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 finished Wednesday at 258.41 within its 52 wk range of 127.73 – 275.30 in NY, down from its all time closing high at 275.30 on 22nd November.

Key technical indicators are Neutral-Bullish in here. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key resistance is at 267.27, the Key support is at 257.05, our Key technical indicators are now Neutral-Bullish.

Societe Generale places a Street high price target of $290 on RACE as compared to the average sell-side price target at 195.93. Most Street analysts still do not know how to view Ferrari.

Morgan Stanley called out $RACE a “sleeper” EV play as the firm can justify more than 100% of the company’s value with its ICE business. MS’s new price target of $350 reps more than 35% Northside potential for shares and is above the average analyst 1 yr target is at 208.64.

MS automotive analyst says, “Longer term, we see scope for Ferrari to offer a range of EV products at potentially higher prices than the average selling price of today’s Ferrari, while leveraging economies of scale on higher volumes.

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, an 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. 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 208.29.

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 call 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 instances of insider selling over the past yr that we have seen. And Ferrari continues to buy back its stock in here.

The stock is considered defensive in the sector.

Have a prosperous day, Keep the Faith!

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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.