Ferrari (NYSE:RACE) Stock in Your ‘Christmas Stocking’

Ferrari (NYSE:RACE) Stock in Your ‘Christmas Stocking’

Ferrari (NYSE:RACE) Stock in Your ‘Christmas Stocking’


Ferrari (NYSE:RACE) stock outperformed the world’s auto giants and the broader market in Y 2016 with a return of 21%.

Similarly, so far in Y 2017, the stock has had a Supercar ride. Despite its recent weakness, Ferrari was trading at 83.4% YTD gains as of 12 December.

Tesla (NASDAQ:TSLA) has risen 59.6% YTD, while General Motors (NYSE:GM) and Honda Motor (NYSE:HMC) have risen 19.2% and 14.8%, respectively, YTD.

According to the latest data by Thomson Reuters on 12 December, 40% of the analysts covering Ferrari stock recommend a “buy,” 30% recommend a “hold,” and 30% recommend a “sell.”

These views are from the 10 analysts covering Ferrari now, not including HeffX-LTN Aristocrat list long term which you can see here.

The analysts’ 12-month consensus target price for Ferrari is 113.58, which reflects an upside potential of 6.5% from its current market price of 106.65.

In the past month, the analysts’ consensus target price has risen from 110.48.

In Q-3 of Y 2017, Ferarri reported a 25% Y-Y rise in its earnings.

Its revenues rose 7% Y-Y, and

Its adjusted operating margin expanded to 24.2%, up from 22% one year ago.

During Ferrari’s Q-3 Y 2017 earnings call, management also revised the company’s FY 2017 guidance marginally upward.

Some how the upward revision did not seem to appear to impress investors, likely because they expected a much higher revision after the solid growth we saw in the 1st 3 Quarters of the year.

However, if Ferrari beat its Y 2017 guidance by a good margin, which we believe it will this correction mode will prove a buying opportunity, thank you Santa Claus.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 104.96 14 December 2017 -0.84 106.45 107.09 104.89 226,011
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bearish (-0.32) Bearish (-0.48) Bearish (-0.33) Neutral (-0.15)

Stay tuned…

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