Evercore ISI Upgrades Ferrari (RACE) to Hold
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Evercore ISI upgraded Ferrari (NYSE: RACE) from Sell to Hold with a price target of $46.00 (from $33.00).
Analyst George Galliers commented, "We upgrade Ferrari to “Hold” and increase our TP to $46 (from $33). Ferrari continues to build “Special Cars” and the recent announcements of the LaFerrari Aperta and 350 units to celebrate the marque’s 70th anniversary drive our numbers higher. However, Ferrari is yet to convince us that it is a “Special” investment case and we would cite the lack of operating leverage at Q3 (adj. 2.2%) as a case in point. While Ferrari has beaten both street and our own expectations year to date, we have seen little to dispel concerns cited in our initiation around earnings outgrowth, pricing and cost reductions. As a result, we only raise Ferrari to a “Hold” and lift our DCF-derived target price to $46, placing Ferrari on 11x 2017 Ind. EV/EBITDA. The market has “voted” over in recent quarters that Ferrari should trade close to 12x EBITDA and low 20s P/E, in-line with best luxury brands and not premium auto. This debate should go on until a downturn where it will be tested, hence our caution."
Shares of Ferrari closed at $54.89 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- ULTA Salon (ULTA) PT Raised to $290 at Stifel But Remains Sidelined
- Pivotal Research Downgrades Kroger (KR) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!