Ferrari (NYSE:RACE) Stock Trades Higher Than Analysts’ Targets

Ferrari (NYSE:RACE) Stock Trades Higher Than Analysts’ Targets

Ferrari (NYSE:RACE) Stock Trades Higher Than Analysts’ Targets


Notably in Y 2016, Ferrari (NYSE:RACE) outperformed all legacy carmakers and the broader US market (NYSEArca:SPY), with a 21.1% return.

And again, in Y 2017 YTD we are seeing a terrific for the iconic Italian Super and HyperSupercar maker.

As of 28 August Ferrari stock delivered a 95.8% return YTD, and Fiat Chrysler (NYSE:FCAU) Ferrari’s former owner, returned 64.2% YTD.

In comparison, Ford Motor (NYSE:F) lost about 11.0%, General Motors (NYSE:GM) returned 1.9%.

According to the date, 56% of the 9 analysts covering Ferrari have given it “buy” recommendations, 22% have recommended “hold,” and the remaining 22% expect Ferrari’s value to fall, and have given “sell” recommendations.

Ferrari’s consensus 12-month target price is 93.65, which about 20% off its market price of 114.55.

Recently, analysts’ target price for Ferrari stock has risen from 79.30 to 93.65. But, Ferrari stock is racing far ahead of analysts’ expectations.

Below is a look at some Key reasons for this investor optimism, as follows:

In Y 2016, Ferrari’s V12 engine car sales were lower than in the prior year. This decline concerned investors because cars with V12 engines generate higher profits for Ferrari than V8 engine cars.

Then in 1-H of Y 2017, Ferrari revived its V12 car sales, reporting a 6.4% and 5.3% Y-Y rise in its global shipments in Q’s 1 and 2.

A continuation of this positive trend in Ferrari’s shipments keeps investors’ optimism alive. That along with its most recognized luxury brand, its F1 racing success and various other important related revenue streams.

The Chart below show the success of Ferrari in the financial market, and of course as the dominant in the Super and HyperSuper car arena.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 114.55  31 August 2017 -0.05 113.79 114.77 113.72 526,989
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.49) Bullish (0.35) Very Bullish (0.52) Very Bullish (0.58)

Stay tuned…


The following two tabs change content below.

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.

You must be logged in to post comments :