- Ferrari (NYSE:RACE) shares jump as Societe Generale upgrades the stock to Buy from Hold, citing the automaker’s record net order intake and ability to sidestep semiconductor chip shortage issues.
- Analyst Stephen Reitman said that he is not overly concerned about the transition to EVs at the company. “We believe the brand’s core values of performance, desirability and exclusiveness can be just as relevant in an EV world as in the ICE gasoline world,” he comments.
- Mr. Reitman is impressed by new CEO Benedetto Vigna, whose background at STMicroelectronics signaled a clear intention by Ferrari to accelerate the company’s shift to electrification. Societe Generale’s confidence level has “increased significantly” following their impressions of CEO Vigna in Ferrari’s Q3 earnings call.
- Societe Generale placed a price target of $290 on RACE as compared to the average sell-side price target at 218.
- LTN’s long-term price target is at 375, the Street’s high.
Ferrari is The Aristocrat of the automotive sector.
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 Tuesday at 255.85. +7.03 within its 52 wk range of 127.73 – 281.96 in NY, and is currently trading at 256.77 after hours in NY, 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 237.92 and the resistance is None. All of our Key technical indicators are all Very Bullish in here.
Societe Generale places a Street high price target of $290 on RACE as compared to the average sell-side price target at 218.
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, 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 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 call 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.
Have a prosperous day, Keep the Faith!