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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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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