Ferrari (NYSE:RACE) a New Aristocrat Stock
Ferrari (NYSE:RACE) is the New Aristocrat stock and a core position for managed money and savvy investors.
Iconic Italian Supercar maker Ferrari’s stock is up over 70% since its 2015 IPO, it has not slowed since reversing at 40/share in July 2016, I do not expect it to for the long term.
It’s new focus on hybrid models announced here Monday, a utility (SUV), and higher overall output could send the stock to my price target of $100 and higher, RACE shares finished at 90.59 Tuesday in New York
According on my recent information Ferrari is setting up to launch a new 4-year plan this yeat with aggressive targets that is not priced in now.
Ferrari will target 2X’ing revenues with a multi-faceted strategy that includes higher unit volumes, significant price increases, and higher margins.
Ferrari hints at a new vehicle to satiate the growing SUV obsession, details are scant. Chances are may not be bigger but will sit higher than the “Shooting Brake” GTC4 Lusso, which debuted last year.
I believe that there are enough ultra-high net worth drivers in the market who would prefer to drive a Ferrari ahead of any competing brand.
Other factors like F1 impact sales too, especially if Sebastian Vettel and The Scuderia stays on top of the championship points this season.
The F1 racing circuit is just making inroads into China where the brand’s F1 racing heritage is just beginning to resonate with consumers.
Further, Ferrari is set to launch hybrid technology across all its vehicle segments in Y 2019, something me and other analysts are very optimistic about.
“We think hybrid will completely change the economic model for Ferrari’s car business,” the specialty automotive at UBS says.
|NYSE:RACE||90.59||11 July 2017||2.08||89.35||90.84||89.07||1,129,800|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.45)||Neutral (0.19)||Very Bullish (0.58)||Very Bullish (0.58)|