Ferrari (NYSE:RACE) Shares Upgraded at Morgan Stanley

Ferrari (NYSE:RACE) Shares Upgraded at Morgan Stanley

Ferrari (NYSE:RACE) Shares Upgraded at Morgan Stanley


Wednesday, despite reporting Top & Bottom-line consensus beats, Ferrari (NYSE:RACE) fell as much as 13% after its new CEO called Y 2022 targets “aspirational.”

Overnight the stock’s prospects Morgan Stanley came out Bullish Thursday.

Morgan Stanley auto sector analyst  Adam Jonas upgraded Ferrari from Underweight to Equal-Weight and raised the price target from 110 to 120.

His upgrade is based on 3 factors, published in his Thursday note, they are as follows:

  1. Ferrari “materially derisked” the Street’s expectations for an upcoming presentation of Y 2022 targets by conceding and alluding to risks. “We believe that, given management’s and the board’s goal of protecting the brand and creating long-term value, the introduction of more balance in the targets is completely warranted,” he said.
  2. Morgan Stanley professed confidence in Ferrari’s new CEO, who brings previous experience from the board and a worthy reputation fromPhilip Morris International Inc. (NYSE:PM). Louis Camilleri’s focus on long-term strategy over near-term results is seen to drive execution.
  3. A smaller gap between the stock price and Morgan Stanley’s target yields balanced risk-reward.

Ferrari shares were trading up 5.94% at 125.31 at the close in NY Thursday.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 125.31 2 August 2018 7.31 122.49 128.25 121.64 2,911,832
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.42) Bearish (-0.25) Bearish (-0.39)

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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