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Alex Vieira has been discussing Ferrari (RACE) since IPO – stock market LIVE.TV has downgraded Ferrari to Buy as its share price approaches $60 from a Strong Buy rating initiated at $32.7.
On Nov. 7, Ferrari reported its third quarter fiscal 2016 results. The supercar company delivered a strong 7.57% net revenue growth to 2.27 billion euros and 22.7% profit growth to 288.8 million euros in its recent nine months of operations.
Ferrari’s shares rose 7.48% that day in comparison to a 2.22% increase in the broader S&P 500 index.
As observed, Ferrari experienced growth in expenses, but a pronounced growth in profit deductions brought by the company’s “net financial expenses/income” from 5.4 million euros to 25 million euros, a 362% increase for the period.
According to most recent data, the $14 billion Ferrari had a trailing PE ratio of 29.9 times (industry median 17), PB ratio of 55.7 times (industry median 1.58) and PS ratio of 3.3 times (industry median 0.76). Ferrari, despite its leveraged position, had a trailing dividend yield of 0.88% with a 33% payout ratio.
Ferrari was founded in 1947 by Enzo Ferrari. Over time, the supercar company devoted its time in developing exquisite, powerful endurance cars that could last in World Championship races, such as the 24 Hours of La Mans, 24 Hours of Daytona and Formula One tournaments. Ferrari sold 50% of its stake to another Italian car maker Fiat Chrysler in 1969 and allowed the latter to raise its stake to 90% in the late 1980’s
Ferrari competition is doing absolutely great
While Ferrari’s road car business has been firing on all cylinders for decades, McLaren only started down this road in 2011. But, it’s making up ground quickly. Very quickly.
On Thursday, McLaren Automotive announced that its global sales doubled in 2016 from 1,654 cars to 3,286. Much of the sales growth can be attributed to the newly released entry level Sports Series — the 540C, 570S, and 570GT. Of the 3,286 cars, 2,031 cars can be attributed to the Sports Series. The other 1,255 cars were from the pricier Super Series.
“2016 was a remarkable year for McLaren Automotive,” McLaren Automotive CEO Mike Flewitt said in a statement. “We’d planned it to be a year of considerable growth, thanks to the first full year of Sports Series production, but it’s surpassed even our own optimistic expectations.”
In December, McLaren built the 10,000th car in company history — a ceramic gray 570S
At the 2017 Geneva Motor Show, McLaren will launch its next salvo against the prancing horse with the introduction of a new second generation Super Series to rival the Ferrari 488 GTB.
Ferrari stock outlook 2017
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