According to the latest consensus data compiled by Reuters, 50% of analysts covering Ferrari (RACE) gave the stock “buy” recommendations, 25% of the analysts gave it “hold” recommendations, and 25% of the analysts gave it “sell” recommendations.
Investors should pay attention to analysts’ recommendations. The recommendations could impact Ferrari’s stock price movements. If popular analysts change their views, significant short-term movement in the stock’s price could occur.
Expected returns and target prices
As of February 3, 2017, Ferrari’s consensus 12-month target price was $59.14—already much higher than its market price of $65.70.
After Ferrari’s strong 2016 earnings results, most Wall Street analysts are positive on its stock. However, they might be maintaining conservative price targets because its stock already witnessed solid gains in the last few months. The recent gains open the possibility of a downward price correction in the stock going forward.
Read An Investor’s Guide: Is Ferrari Racing on a Rough Road? to learn more about Ferrari’s business.
Auto industry’s 4Q16 earnings
Mainstream automakers (XLY) including Ford and Fiat Chrysler (FCAU) released their 4Q16 earnings on January 26, 2017. While Fiat Chrysler’s 4Q16 results showed a consistent improvement in its margins, Ford’s (F) 4Q16 results continued to disappoint investors. Read Ford’s 4Q16 Earnings: Another Disappointment? and Fiat Chrysler’s 4Q16 Results: Coasting Toward 2018 Targets? to learn more.