COVID-19 is no match for the world’s Ferrari (NYSE:RACE) lovers, as the iconic Italian Supercar maker’s sales are strong despite the coronavirus chaos that has hammered the rest of the automotive sector.
Since 23 March Ferrari stock has risen sharply about 25% with its stock +7% in the last week.
Automobile makers like Ford and General Motors in the US have seen their shares dive, no buyers! Ferrari is off about 7% from it highs this year.
JPMorgan’s automotive analyst says that demand for Ferrari cars currently outstrip supply, with customers sometimes needing to wait a year or more for delivery. I have it on good authority that not 1 order was cancelled during this virus chaos.
Ferrari is positioned to weather the coronavirus economic downfall due to its large earnings growth in the last few years and a consistent base of its clienti. The shares go ex-dividend on 5 May. All employees are being paid.
The IMI automotive research analyst said: “The group’s positioning, its more than solid order intake, capability in managing deliveries and waiting lists, and its structural strong commitment in prioritizing margins and [future cash flow] on revenues guarantees a higher resilience and better protection to the current challenging scenario.”
The Maranello Outfit will hold its annual shareholders meeting 16 April in Amsterdam.
Our overall technical outlook is Bullish in here, as 3 of my key indicators are Very Bullish.
Ferrari finished at 161.04, +7,04 Friday in NY, the Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now.
Have a healthy day, Keep the Faith
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