Ferrari (NYSE:RACE) is the Top world in the automotive sector and beyond brand
It makes the finest and most sought after Super and Hyper Supercars in the market with the highest margin generating strong EPS and paying an annual dividend in just a few years since its October 2015 IPO, a spinoff from Fiat-Chrysler.
Ferrari deserves a high valuation because it is a luxury brand and its goods are sold worldwide and is expanding with its recent tie-up with Armani.
A Key component of the Bull thesis for the Maranello Outfit is that its clienti have increased both in numbers and and wealth over the past few years.
Ferrari Supercar customers are wealthy and pay in cash.
Overall, Ferrari is also recession-proof due to the demand world wide from customers who want the to own 1, and there can be only 1#1.
Ferrari is not like any other automotive brand and most analysts do not understand it and may never they are in the Tesla EV ozone, do not own 1 and have not driven 1 and likely never seen 1 in person (or ever will).
Ferrari trades at a high multiple like Hermes and LVHM deserves it.
And let’s not forget F1, Ferrari is Formula One, the world’s premier motorsport!
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 Bullish, there is light overhead resistance at 178.93, and Key support is solid at 171.39, the stock has established strong long term support. All of our Key indicators are Very Bullish in here.
Ferrari finished at 177.85, -1.36 Thursday in NY.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term and siding with BAML to 230 long term for now.
Have a terrific weekend