“There is minimum information on what the Purosangue will look like or cost, stay tuned“– Paul Ebeling
The Ferrari (NYSE:RACE) Purosangue FUV is set to launch early in Y 2023.
Standing for the Italian words for pure (“puro”) and blood (“sangue”), the Pursosangue is the luxury sportscar maker’s 1st performance SUV at a time when competitors like Lamborghini and Aston Martin are launching their own versions. While the debut 1st, the 1st buyers will start receiving their cars in early Y 2023 the rumor is that the order book is filled already
The announcement came during a Wednesday earnings call in which the Maranello, Italy-based Ferrari reported net profit of €833 million (around $940 million), up from €609 million in 2020). Car orders also hit a record 11,155, or 22% more than in Y 2020.
“I’ve driven it several times in the hills of Maranello,” CEO Benedetto Vigna told analysts. “And I can testify that the driving experience is really astonishing.”
Ferrari has not released any information on the new FUV’s look, cost or driving capabilities, and the photos to emerge online are theoretical renderings. We do know that it will fearure hybrid power options.
Ferrari is The Aristocrat of the automotive sector.
Ferrari is 1 of the most recognizable brands in the world, even becoming the world’s strongest luxury brand in Y 2021, according to Brand Finance. Its Brand Strength Index scored 93.9 pts out of 100 and has a brand strength of AAA+.
Our overall technical outlook is still Bullish, all 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 is trading Thursday at press time at 233.00 within its 52 wk range of 127.73 – 275.30 in NY, down from its all time closing high at 275.30 on 22nd November.
Key technical indicators are Bearish in here. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key resistance is at 242.54, the Key support is at 225.7, our Key technical indicators are now Neutral.
Societe Generale places a Street high price target of $290 on RACE as compared to the average sell-side price target at 195.93. Most Street analysts still do not know how to view Ferrari.
Morgan Stanley called out $RACE a “sleeper” EV play as the firm can justify more than 100% of the company’s value with its ICE business. MS’s new price target of $350 reps more than 35% Northside potential for shares and is above the average analyst 1 yr target is at 208.64.
MS automotive analyst says, “Longer term, we see scope for Ferrari to offer a range of EV products at potentially higher prices than the average selling price of today’s Ferrari, while leveraging economies of scale on higher volumes.“
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, an 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. 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 208.29.
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 call on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and Ferrari continues to buy back its stock in here.
The stock is considered defensive in the sector.
Have a prosperous day, Keep the Faith!