Ferrari’s (NYSE:RACE) Path from Upstart Racer to Aristocrat of the World’s Automotive Sector

Ferrari’s (NYSE:RACE) Path from Upstart Racer to Aristocrat of the World’s Automotive Sector

$RACE

Facts:

  • Ferrari is one of the most valuable brands in the world.
  • Ferrari: the Italian supercar maker and F1 racing operation is worth $30-B at this writing.
  • Unlike many of its rivals, Ferrari is a racing operation 1st and car company 2nd.
  • Ferrari was founded as a racing team with the sale of road cars as a means to fund the racing operation.

Over the past 72 yrs, Ferrari (NYSE:RACE) has come a long way since its start as a an unbadged race car builder.

In October 2015, Ferrari’s IPO on the NYSE valued the company at $10-B. Now, the company’s market cap has risen to $30-B. This makes the iconic Iraian Supercar maker one of the most valuable and recognizable brands in the world; its “prancing horse” logo is synonymous with sex, money and the good life.

Ferrari was not always the global luxury brand that’s now being traded in New York. The company’s early days as a maker of racing cars were humble, and it took an Italian-American racing star named Luigi Chinetti to begin the transformation into a purveyor of glamorous supercars for the world’s royalty, celebrities and wealthy sportsmen.

In the 1960’s the company’s racing success drew takeover interest, and later rivalry, from Ford (NYSE:F) before Ferrari eventually became a unit of FIAT.

For many years, Ferrari has limited its annual production figures to preserve the exclusivity of its cars. However, since the IPO in October 2015, the company has steadily increased the number of cars it delivers to its waiting on line customers.

But even if Ferrari sells 10,000 cars, those cars are still exceedingly rare. In fact, most of the company’s models are supply limited in that the number it sells is limited not by how many people want to buy a car but by how many it can make.

Click here for the story of Ferrari’s incredible 70 yrs + path to The Aristocrat of the world’s automotive sector. Enzo Ferrari: Race Driver, Businessman, Master Brand Builder

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 Bearish, overhead resistance is at 164.62 and support at 160.15 all Key indicators are flashing Neutral to Bullish in here. Ferrari finished at 161.94 +1.95 Thursday 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 (-7.5% 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.

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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