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Monday, November 29, 2021
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Ferrari (NYSE:RACE) Marks All-time Highs

#Ferrari

$RACE

“Ferrari won it EU court backing its rights dispute with German car designer”— Paul Ebeling

Ferrari (NYSE:RACE) the iconic  Italian luxury sports car maker Thursday won its dispute with a German car design company after Europe’s Top court agreed with its arguments that it owns the design right to the appearance of its race track car Ferrari FXX K.

The case has implications for a wide swathe of industries, in particular luxury brands seeking to protect their designs from knock-offs, and manufacturers of complex products made up of numerous components.

At issue is the V-shaped section of the bonnet and the front bumper which distinguish the Ferrari FXX K from other cars.

Ferrari sued Mansory Design in the German court for making and selling these accessories designed to make the Ferrari 488 GTB, which is priced at around $250,000, look like the $2.6-M Ferrari FXX K, saying the company violated its rights to the unregistered designs.

The CJEU said a component can be considered to be an individual part with design rights if it is “a visible section of the product or complex product, clearly defined by particular lines, contours, colors, shapes or texture”

Ferrari stock spiked to all time highs at 238/share on 2X average volume.

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

Our overall technical outlook is still Bullish, a 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 Thursday at 235.06 +3.62 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December. RACE is now just 4.4% shy of its all time high.

Key technical indicators have turned Very Bullish across the board. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key support is at 234.53 and the resistance is None. The 12 October DOJI told us the Bullish trend will continue. All of our Key technical indicators are Very Bullish across the board now..

Friday, 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.

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, its all time high and faded.

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 some recent profit taking, and seeing RACE as an Aristocrat core position luxury stock that pays a dividend.

Ferrari has an average rating of Buy and a consensus target price at 225.78.

The Maranello Outfit’s shares were raised downgraded from Buy to 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 am calling it 375 long term, the Top on the Street, and adjusting it to 250/share near 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!

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 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.   

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