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Ferrari (NYSE:RACE) Q-4 Yr 2020 Earnings Preview

#Ferrari #earnings

$RACE

  • Ferrari (NYSE:RACE) is scheduled to announce Q-4 and full yr 2020 earnings results Tuesday, 2 February pre US market open.
  • The consensus EPS Estimate is €0.99 (+10.0% Y-Y) and the consensus Revenue Estimate is €1.06-B (+14.3% Y-Y).
  • Analysts expects Adjusted EBITDA of €364.1-M.
  • Over the last 3 months, EPS estimates have seen 2 upward revisions and 2 downward. Revenue estimates have seen 6 upward revisions and 2 downward.

1 EUR = USD 1.21

Ferrari finished trading in NY Monday at 216.99, +8.18 (4.23%) within its 52 wk trading range of 127.73 – 233.66. There is Strong support at 213.30 and the Key resistance is at 224.27.

We consider Ferrari a notable investment and see a whole lot of room for growth. RACE is the Aristocrat of the automotive sector that now has a $51.7-B market cap. For the past 3 months, the Maranello Outfit delivered a sterling 16.68% ROI.

The Key to Ferraris success is always building fewer cars than are demanded in the market, which supports pricing of both the new cars as well as preowned models. These are classic goods; demand increases with price precisely because they are so hard or expensive to acquire.

Our analysis says that over the long term in order to maintain that brand exclusivity Ferrari has to manage the pricing of its cars by making sure it is growing pricing fast enough to keep up with the growth of its customers’ wealth. Some that it is very adept in doing.

As a unique in demand luxury goods producer Ferrari benefits the customer, the company, and shareholders.

We believe that Ferrari will continue to do well, as its addressable market has barely been scratched. About 70% of its clienti are repeat buyers, while their customer base represents less than 1% of my estimate of potential clienti worldwide.

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 overall Bullish, the Key resistance is at, the Key support is at .

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 expect the same for Q-4 and F-Y 2020 that will be reported on 2 February.

Ferrari finished trading Thursday at 206.98 against it 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.

All technical indicators have turned Bullish, the support is Strong at 213.30, the Key resistance is 224.27. Ferrari’s stock is still a bit oversold in here, but the pattern indicates the confirmation of the break out at 196.01 on 3 November Monday at 216.99. Stay tuned…

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

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, Morgan Stanley and Bank of America. UBS is now calling the stock at 365. Citi downgraded the stock from Buy to Neutral Thursday. 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 239.98.

The Maranello Outfit’s shares were raised to Buy from 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 230/share short term.

A number of large investors have recently bought shares of RACE, and there has been just 1 instance of insider selling over the past yr that we have seen.

The stock is considered defensive in the sector.

Have a healthy 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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