Ferrari (NYSE:RACE) Stock Outperforms in FY 2017

Ferrari (NYSE:RACE) Stock Outperforms in FY 2017

Ferrari (NYSE:RACE) Stock Outperforms in FY 2017


In Y 2016, Ferrari (NYSE:RACE) outperformed legacy automakers and the broader market with 21.1% returns.

YTD it has also been terrific for the Italian luxury Supercar maker too.

As of 14 July, Ferrari stock has delivered over 60% YTD positive returns.

On a YTD basis, Ford (NYSE:F) has lost about 5.4% while General Motors (NYSE:GM)) and Fiat Chrysler (NYSE:FACU) have 1.9% and 26.2% YTD gains, respectively.

Last July about this time I called Ferrari significantly higher on the year on its breakout at 40/share

According to the published data so far this month of July 12, 56% of analysts covering Ferrari have given it “Buy” recommendations. Another 22% have recommended a “Hold,” while the remaining 22% expect Ferrari to drop and have given it “Sell” recommendations.

Ferrari’s consensus 12-month target price was 79.30, which is already about 17% lower than its market price of 93.90.

10 analysts currently cover Ferrari including me, my call is for 100/share near to medium term.

Italian-American auto giant Fiat Chrysler spun off Ferrari as a separate entity on 20 October 2015 when it was listed on the NYSE with an oversubscribed IPO.

In Y 2016, Ferrari’s V12 engine Supercar sales fell, which concerned some analysts and investors, as V12 engine Supercars generate higher profits for the company as compared to its V8 engine vehicles.

In Q-1 of Y 2017, Ferrari revived its V12 car sales. Plus, the company reported a 6.4% Y-Y rise in its global shipments in Q-1. A continuation of this positive trend in the company’s shipments will likely keep investors’ optimism alive in 2-H of Y 2017.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 93.9 14 Jull 14-2017 1.14 92.74 94 92.41 513,500
HeffX-LTN Analysis for RACE Overall Short Intermediate Long
Bullish (0.38) Bullish (0.27) Bullish (0.38) Very Bullish (0.50)

Have a terrific weekend.

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