RACE - Ferrari: Few Near-Term Catalysts Wait For A Dip

2024-06-14 08:15:19 ET

Summary

• We believe there are a few near-term positive catalysts in 2024 and those might already be priced in.
• Order book is normalizing, and there is an expectation for a luxury sector valuation reset.
• Still, Ferrari's valuation looks full, and we continue to remain on the sideline.

Here at the Lab, we had a good timing rating on Ferrari ( RACE ). Following a rating downgrade (Fig 1), the company released the Q1 earnings, and despite solid results, Ferrari's total return was negative compared to the S&P 500 changes. As a reminder for our new readers, since early 2022, we have been overweight Ferrari with a publication called RACE Again , recording a triple-digit return....

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