Ferrari (NYSE:RACE) share price is up nearly 70% in the last 3 years besting the overall market return of 28% not including dividends.
Ferrari was able to grow its EPS at 16% per yr over the past 3 yrs, driving the share price North.
It is not coincidental that the EPS growth is close to the 19% average annual increase in the share price. That suggests that the positive market sentiment around the company has not changed much over that time, as the share price has approximately tracked EPS growth.
For Ferrari the TSR (total shareholder return) over the last 3 yrs was 73%, which is better than the share price return mentioned above, the dividend payments explain the divergence.
Our overall technical outlook is Bullish in here, as all Key indicators are Very Bullish.
Ferrari finished at 179.19, -2.99 Friday in NY, just shy of its intraday all time highs at 183.50 marked on 22 July 2020.
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 have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.
Have a healthy week, Keep the Faith!
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