UBS Remains Bullish on Ferrari (RACE) and Raises Price Target to $50

UBS reiterated a Buy rating on Ferrari (NYSE: RACE), and raised the price target to $50.00 (from $48.00), following the company's 1Q earnings report.

Analyst Michael Binetti commented, "Despite beating 1Q ests & raising '16 guidance, RACE's stock has pulled back slightly due to: 1) a +7% stock run over the past month—suggesting that investors anticipated a guidance increase; and 2) the view that 1Q was boosted by limited run Special Car sales that will be tough to sustain through '16 and 2017. 2Q revs & EBITDA may indeed be pressured from a lower mix of V12 units—and we're trimming our 2QE EBITDA accordingly (to €193m from €203m). That said, we're raising our '16 est to €805m from €775m based on several emerging 2H tailwinds: 1) Accelerating TDF sales; 2) 3Q GTC4 Lusso launch; 3) Accelerating engine sales for Maserati Levante (forecasting +45% in 2H vs +5% in 1H), 4) a YOY lift in personalization (TDF was designed to drive personalization above RACE's 15% avg); and 5) €40-50m in EBIT FX tailwinds in 2H."

For an analyst ratings summary and ratings history on Ferrari click here. For more ratings news on Ferrari click here.

Shares of Ferrari closed at $43.95 yesterday.

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