Ferrari (RACE) stock has outperformed the legacy auto companies and the broader market for the last two years in a row. In 2016 and 2017, the company yielded returns of ~21.0% and 80.3%, respectively.
Among Ferrari’s peers (XLY), Tesla (TSLA) stock rose ~45.7% in 2017, General Motors (GM) stock gained 17.7%, and Ford (F) stock rose 3.0%. On August 28, Ferrari stock has risen ~24.0% year-to-date, outperforming its peers—including GM, Ford, Fiat Chrysler (FCAU), and Tesla.
Most analysts recommend a “buy”
According to recent data by Thomson Reuters, 55.0% of the 11 analysts covering Ferrari stock in August gave it “buy” recommendations. Another 36.0% recommended a “hold,” and the remaining 9.0% expect Ferrari stock to drop and recommended a “sell.”
These analysts’ 12-month consensus target price for Ferrari stock was $142.69, which was 9.7% higher than its market price of $130.04. The consensus target price on the company has risen slightly from ~$139.32 about a month ago.
In the second quarter, RACE reported an ~16.7% YoY (year-over-year) increase in its adjusted earnings. The company’s revenues for the quarter fell 1.6% despite a 5.6% YoY jump in its global shipments.
Unfavorable currency movement hurt its revenues. However, its adjusted EBITDA margin expanded to 31.9% in the second quarter from 29.4% in the second quarter of 2017.
During its second-quarter earnings conference call on August 1, RACE stock fell ~12.0% from the previous day’s closing price. During Ferrari’s earnings conference call, its newly appointed CEO, Louis Camilleri, mentioned that the targets of former CEO Sergio Marchionne’s 2022 business plan were “aspirational.” This was one of the key reasons for investors’ negative reactions on Wall Street during the conference call.
Read on to the next part to see how analysts rated Harley-Davidson (HOG) stock in August.