Ferrari (NYSE:RACE) will stage its 1st runway show at it Maranello, Italy HQ on 13 June.
The show is expected to take place in person. The collection will feature men’s, women’s and children’s clothing along with accessories, all of which will be made in Italy through a network of luxury suppliers.
Designer Rocco Iannone, the brand’s Milan-based brand diversification and creative director, will oversee the collection. He previously served as creative director of Pal Zileri and as head designer at Giorgio Armani. Ferrari will not produce its collection at Armani’s manufacturing facilities.
Armani has signed a multi-year sponsorship of the Scuderia Ferrari racing team. Under this agreement, the fashion house will supply formal attire and travel wear for the team’s management, drivers and technicians to be worn at official events and during transfers linked to F1’s Grand Prix races.
To further cement its status as a luxury brand pn the road and track, Ferrari has also inked a deal with Richard Mille to produce exclusive timepieces. And to accompany the launch of the brand’s fashion collection, the Ferrari-owned restaurant, Cavallino, will reopen in Maranello, led by renowned Michelin-star chef Massimo Bottura.
“Over the years, we have developed considerable knowledge about the luxury sector and our ownership of Ferrari has allowed us to understand better the art of building luxury brands,” said John Elkann, Chairman of Ferrari. “This sector is characterized by strong economics and durability. In 2020, it proved its strength and resilience and it is benefitting from strong market growth, particularly in China.”
Ferrari is The Aristocrat of the automotive sector.
Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.
Ferrari on Friday finished at 215.90 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.
Key technical indicators have turned Very Bullish. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key support is strong at 211.08 and the Key resistance is at 233.66 at the close Thursday in NY.
Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.
UBS is now calling the stock at 365. Citi downgraded the stock from Neutral to sell. I have not seen any other Street downgrades.
Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.
Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.
I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.
Ferrari has an average rating of Buy and a consensus target price at 236.92.
The Maranello Outfit’s shares were raised downgraded from Buy to 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 am calling it 375 long term, the Top on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen.
The stock is considered defensive in the sector.
Have a healthy week, Keep the Faith!