Italy’s iconic luxury Supercar maker Ferrari NV (NYSE:RACE) will not expand production GT cars, and will not chase rival Porsche’s annual sales volume, Ferrari Chairman John Elkann told a group of classic car enthusiasts gathered the Pebble Beach Concours d’Elegance this weekend.
He reiterated that Fiat Chrysler Automobiles ((NYSE:FCAU), of which he is also Chairman, remains open to opportunities to combine with other automakers, but is positioned to remain independent.
In May, Fiat Chrysler in proposed a merger with French automaker Renault SA, but the the French government intervened and Mr. Elkann withdrew the offer.
Ferrari is best known for Top Tier luxury high performance sports motor cars.
Chairman Elkann noted that Ferrari will debut a new GT car in November. Ferrari has said previously that about 40% of its total sales could come from GT cars by Y 2022, up from 32% now.
Ferrari has outlined plans to expand revenue to EUR 5-B ($5.54-B) by Y 2022 from EUR 3.4-B in Y 2017. The company has said it plans to add a FUV model called the Purosangue aka Thoroughbred to compete with a growing number of SUVs wearing premium sports car badges.
Rival Porsche AG, a unit of Volkswagen AG (OTCMKT:VLKAY), has expanded its sales to more than 250,000 sports cars and SUVs
Ferrari makes less than 10,000 units annually and there is a waiting list for its Supercars.
Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.
HeffX-LTN overall technical outlook for RACE is Neutral to Bullish, overhead resistance is at 160.24, and support at 154.42, all Key indicators are flashing Bullish to Very Bullish in here. Ferrari finished at 156.07, +0.75 Friday in NY.
Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (-7% since July 16) as a good entry point in here.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.