UBS Remains Bullish on Ferrari (RACE) and Raises Price Target to $50
UBS reiterated a Buy rating on Ferrari (NYSE: RACE), and raised the price target to $50.00 (from $48.00), following the company's 1Q earnings report.
Analyst Michael Binetti commented, "Despite beating 1Q ests & raising '16 guidance, RACE's stock has pulled back slightly due to: 1) a +7% stock run over the past month—suggesting that investors anticipated a guidance increase; and 2) the view that 1Q was boosted by limited run Special Car sales that will be tough to sustain through '16 and 2017. 2Q revs & EBITDA may indeed be pressured from a lower mix of V12 units—and we're trimming our 2QE EBITDA accordingly (to €193m from €203m). That said, we're raising our '16 est to €805m from €775m based on several emerging 2H tailwinds: 1) Accelerating TDF sales; 2) 3Q GTC4 Lusso launch; 3) Accelerating engine sales for Maserati Levante (forecasting +45% in 2H vs +5% in 1H), 4) a YOY lift in personalization (TDF was designed to drive personalization above RACE's 15% avg); and 5) €40-50m in EBIT FX tailwinds in 2H."
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Shares of Ferrari closed at $43.95 yesterday.