Ferrari (NYSE:RACE) is a Maker of Luxury Supercars

Ferrari (NYSE:RACE) is a Maker of Luxury Supercars


Ferrari (NYSE:RACE), a spinoff from Fiat Chrysler Automobiles (NYSE:FCAU), came public in October 2015, selling 20% of its shares at 52.

In January 2016, Fiat-Chrysler distributed the remaining 80% of its RACE stock to Fiat Chrysler shareholders: 1 share of RACE for every 10 shares of FCAU.

Ferrari’s buyback program is very successful, and likely some shares are come back from the distribution,

Fiat Chrysler is a $110-B revenue corporation with HQ’s in London. It makes passenger cars, trucks and light commercial vehicles under the Jeep, Ram, Chrysler and Fiat names. It also makes and sells its luxury brand Maserati and the iconic Alfa Romeo line. Its Y 2018 revenues also include income from auto components such as engine control units, suspensions, shock absorbers, cylinder heads, electronic systems, transmissions, gear boxes and related equipment. Lots of other companies in the sector do too.

We like FCAU, but do not cover it as it is not an Aristocrat in the sector.

Note: FIAT is an acronym for Fabbrica Italiana Automobili Torino

Ferrari is the maker of luxury supercars that can exceed 200 mph. The LaFerrari Aperta, is priced between $2.1 to $3.9-M. The Aperta has a Top speed of 220 mph, generates over 900 hp with a 6.3-liter engine displacement.

Ferrari’s entry level sports car is the Portofino has grown fast introducing 100’s of new buyers to Ferrari, as it represents what is best about Ferrari, as it delivers what a buyer can expect from a his/her daily driver, while  delivering a thrill to the driver. Its Top speed is 198 mph and is priced at about $215,000.

Ferrari’s revenues look to exceed $4-B this year, and income should improve to $4-5/share. Though net profit margins (the highest in the sector) may decline a bit on the product mix.

Fully 41 of the Street’s 44 analysts covering RACE have a buy recommendation. We here at HeffX-LTN do too.

Ferrari’s stock price is just off its all time highs + 41% YTD

Fiat-Chrysler’s stock is about 40% of its highs, it has not recovered the fall in Q-4 of Y 2018. Just another car builder, Yes?

Again, Ferrari is the Aristocrat of the automotive sector.

The 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.

Ferrari is the Aristocrat of the automotive sector.

HeffX-LTN overall technical outlook for RACE is Bullish across the board, and there is very little resistance here and none above 140.26. All of our Key indicators are Very Bullish in here.

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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