Ferrari’s (NYSE:RACE) Jefferies Analysts Reaffirm “Buy” Rating

Ferrari’s (NYSE:RACE) Jefferies Analysts Reaffirm “Buy” Rating

Ferrari’s (NYSE:RACE) Jefferies Analysts Reaffirm “Buy” Rating


Again Wednesday, I am taking about a favorite of mine and HeffX-LTN’s Ferrari NV (NYSE:RACE) that we have been following since pre-IPO in October 2105.

Jefferies picked Ferrari to outperform the rest of the stock market by growing its profits at 2X the rate it grows its sales over the next 5 years.

Tuesday in a research published report, Jefferies Group LLC restated their “Buy” rating on shares of Ferrari (NYSE:RACE).

Jefferies’ currently has a 74.00 target price on the stock.

A number of other research analysts have also recently weighed in on the stock.

Citigroup Inc upgraded shares of Ferrari from a neutral rating to a buy rating in a report on Thursday, 23 March 2017.

TheStreet upgraded shares of Ferrari from a d+ rating to a c rating in a report on Wednesday, 29 March 2017.

Zacks Investment Research upgraded shares of Ferrari from a sell rating to a hold rating in a report on Tuesday, 20 December.

Morgan Stanley restated an overweight rating and issued a 72.00 price objective on shares of Ferrari in a report Thursday, 23 March 2017.

One analyst has rated the stock with a “Sell” rating, 4 have given a hold rating and 4 have given a “Buy” rating to the stock.

Ferrari has a consensus rating of Hold and an average target price of 60.53.

HeffX-LTN has a Buy rating on Ferrari with a price target of 80 this year.

Here is why: Ferrari is selling a luxury good into a wealthy market in limited supply, and it has the ability to increase supply without cannibalizing profit. This puts Ferrari in a position to 1. raise its prices, 2. double its unit sales in 10 years, and 3. cut costs all at the same time. And as Hermes reported Wednesday the luxury sector is showing strength, Ferrari is a luxury brand, and the world most recognizable automobile brand too

The car you are looking at is the Ferrari FXXK it is the results of all of that hard work and endless effort coming to life right in front of our eyes as these things open up on the race track and show us exactly what it was all for.

These machines are pure joy to watch and listen to, creating a spectacle as they roar around the track making the brake rotors glow and sounding a symphony from the exhaust in the same instance is quite the experience.

Ferrari has a market cap of $13.52-B, a P/ER of 31.87 and a beta of 1.79. The stock has a 52-week low of 38.71 and a 52-week high of 74.99. The stock’s 50-D MA is 69.68 and its 200-D MA is 60.70.

The company recently declared a dividend, which will be paid Tuesday,2 May. Investors of record on Wednesday, 26 April will be paid a $0.6712 dividend. The ex-dividend date of this dividend is Monday, 24 April. Ferrari’s dividend payout ratio is currently 22.32%.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 71.49 19 April 2017 0.90 71.53 71.77 71.3 488,905
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Very Bullish (0.52) Neutral (0.21) Very Bullish (0.81) Very Bullish (0.54)

Stay tuned..

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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.

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