Ferrari NV (NASDAQ: RACE) (BIT: RACE) reported
strong Q2 results, with the EPS and shipments ahead of the estimates.
Morgan Stanley’s Adam Jonas reiterated an Overweight rating on the company, while raising the price target from $54 to $56.
Another Impressive Quarter
Jonas mentioned that the company “delivered another impressive quarter, with EPS of €0.55, adjusted EBITDA of €217 million on
shipments of 2,214 units.”
Management left the FY16 guidance mostly unchanged, while CEO Sergio Marchionne stated that the record results were “totally in
line with the forecast,” and that the backlog and order book reflect Ferrari’s brand and product strength.
Related Link: Ferrari's
Pricing Power An Underappreciated Profit Driver
No Impact From Brexit
“Sergio also indicated that Brexit has not had an impact in the numbers yet. This underscores the stability of the story, and
supports our belief that Ferrari can be a systematic and steady earnings beat story that can and should lead to the modest multiple
expansion,” Jonas stated.
Outlook
The analyst believes the ramp of GTCLusso in 2H, along with the launch of the open-top LaFerrari in 2017 and the potential
medication of the F12berlinetta could reverse the mix headwinds in 2017.
“Over the long-term, we believe the market will grow to appreciate the stability in Ferrari's cash flows and the experiential
nature of what Ferrari has to offer its consumers,” the analyst added.
The EPS estimate for 2016 has been raised from €1.77 to €1.89, mostly to reflect the Q2 beat.
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Latest Ratings for RACE
Date |
Firm |
Action |
From |
To |
Aug 2016 |
Morgan Stanley |
Maintains |
|
Overweight |
Aug 2016 |
UBS |
Maintains |
|
Buy |
Apr 2016 |
JP Morgan |
Maintains |
|
Neutral |
View More Analyst Ratings for
RACE
View the Latest Analyst Ratings
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