2024-05-09 10:02:19 ET
Summary
- Ferrari defies gravity and sees continuous multiple expansion, causing concerns over its valuation.
- Ferrari's Q1 earnings delivered an incredible business management lesson, showing how the company is able to protect and increase its figures without losing its exclusivity.
- Despite a recent 6% drop in stock price, Ferrari's business model offers high predictability and value to investors, which should be considered seriously.
In May 2022, exactly two years ago, I started my journey as a Seeking Alpha analyst because of Ferrari ( RACE ). I had just bought my first shares, but I was continually reading Ferrari was overvalued and was close to becoming dead money. But I thought Ferrari's economics were so simple and powerful that it was very difficult to imagine the company would have not kept growing, driving the share price along this path. This is why I argued Ferrari was literally firing on all cylinders and rated it as a "strong buy".
Since then, the stock has been a neat 2x.
In these two years, I started sharing my whole research on the stock , adding different angles and perspectives along the way....
Read the full article on Seeking Alpha
For further details see:
Ferrari's New Magical Growth Engine: A Mastery Lesson Served To The market