At the close: 248.81+9.07 (+3.78%), 4:00p EDT
“Ferrari’s earnings say some people have Big Money and are spending it” –Paul Ebeling
Ferrari (NYSE:RACE) came out with Q-3 earnings of $1.31/share, beating the Street estimate of $1.07/share. This compares to earnings of $1.08/share a yr ago.
This Quarterly report represents an earnings beat of 22.43%. A Quarter ago, it was expected that the Iconic Italian supercar maker would post earnings of $1.19/share when it actually produced earnings of $1.34, delivering a surprise of 12.61%.
Over the last 4 Quarters, the company has surpassed consensus EPS estimates 4X.
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
Our overall technical outlook is still Bullish, a 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 finished Monday at 245.87 within its 52 wk range of 127.73 – 247.03 in NY, and is currently trading at 245.87 just shy of its all time high.
Key technical indicators have turned Very Bullish across the board. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key support is at 239.74 and the resistance is None. All of our Key technical indicators are all Very Bullish in here.
Friday, 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.
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, its 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 186.31.
The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC.
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 on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen. And Ferrari continues to buy back its stock in here.
The stock is considered defensive in the sector.
There is F1 racing at the Mexican GP this weekend, tune in here.
Have a prosperous day, Keep the Faith!