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:
- 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.
- 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.
- 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.
|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)|
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