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Giorgio Armani Hints at Enhanced Tie-up with Ferrari

#Armani #Ferrari

$RACE

Giorgio Armani, 86 anni, may consider a joint venture with another Italian company, the founder of the Milanese fashion house said Wednesday. Thus, opening the door for the 1st time to a potential business partner.

Ferrari (NYSE:RACE) seems the choice since Mr. Armani already has an exclusive working agreement with the iconic Maranello Outfit to design all of Ferrari’s consumer product sold around the world in Ferrari stores, theme parks and website, his company is private and family owned.

Mr. Armani ruled out going the way of many other Italian luxury goods brands, including Gucci, Fendi and Bulgari, which have been bought by industry giants LVMH and Kering SA, a French buyer is not on the cards.

However, he said his long-held idea that the company should remain independent was no longer “so strictly necessary.”

One could think of a liaison with an important Italian company,” he said, adding that it did not have to be a fashion company.

Mr. Armani’s niece Roberta Armani, who works at the family’s company, said “it could be great, finally, to have an important Made in Italy joint venture in the fashion industry” though she added she had no insight on her uncle’s plans.

Italians really do some things better. And because designing both Sportscars and enviable clothing these 2 iconic companies definitely do everything better. So, it is natural that 2 of the nation’s titans would team up. The tie-up would not be just about profit, it will be about enhancing Ferrari’s brand equity, the vitality and vibrancy of its brand.

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 closed Wednesday at 208.80 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.

Key technical indicator have turned Very Bullish. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key support is strong at 204.77 and the Key resistance is at 209.33 at the close Wednesday in NY.

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. Citi downgraded the stock from Neutral to sell. 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 243.60.

The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC Thursday.

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.

The stock is considered defensive in the sector.

Have a healthy day, Keep the Faith!


Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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