Home 2020 Ferrari(NYSE:RACE) Analysts’ Forecast

Ferrari(NYSE:RACE) Analysts’ Forecast



Following the latest results, Ferrari’s (NYSE:RACE) 16 analysts are now forecasting revenues of €4.12-B in Y 2020. This would be a 9.5% improvement in sales compared to the last 12 months. Statutory EPS are expected to accumulate 7.8% to €4.02.

Before this weeks earnings report, analysts had been forecasting revenues of €4.07-B and EPS of €4.11 in Y 2020.

So it looks like there’s been a small decline in overall sentiment after the recent results, there has been no major change to revenue estimates, but analysts did make a small dip in their EPS forecasts.

The consensus price target held steady at €155, with analysts voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

The consensus price target just an average of individual analyst targets, so considering that the price target changed, it would be good to see how wide the range of underlying estimates is.

Currently, the most Bullish analyst values Ferrari at €210/share, while the most bearish prices it at €73.60. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

My call is aligned with BAML at $230 (€ 210)/share long term, that is the Top of the range.

NYSE:RACE Past and Future Earnings, February 7th 2020

Ferrari is looking ahead to its expanded product lineup and introduction of next-generation hybrid models including the ramp-up in production of the Stradale launched in Y 2019.

Ferrari estimates that hybrids will represent 60% of the vehicles by Y 2022 supporting an increase in the average retail price given the expected product mix. Ferrari is cautious about Electric Vehicles.

Ferrari is the Aristocrat of the automotive sector.

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, there is resistance at 169.07, and Key support is solid at 164.19, the stock has established strong long term support. The MACD is Very Bullish in here

Ferrari finished at 166.76, -2.04 Friday in NY.

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 and siding with BAML to 230 long term for now.

Have a terrific weekend

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.