#These 2 Top brands represent different segments of the luxury world, but they have one thing in common: sustained excellence. Consumers respect both quality and consistency” — Paul Ebeling.
Ferrari (NYSE:RACE) and Rolex (Private) are the biggest names and earners in luxury, and are 2 of the 3 most reputable brands in the world according to a new study from RepTrak. The multi-faceted survey represents 1 of the 1st comprehensive attempts to figure out where the world’s most respected companies stand following the unprecedented medical emergency events of the last yr.
RepTrak pared its initial list of over 2,000 companies down to the 100 most reputable, the Boston-based data analysis firm polled 68,577 people from across the world’s 15 largest economies.
From there, in order to qualify, a company needed to have a global revenue of over $2-B, had to break a familiarity threshold of 20% and a reputation score that factored in products and services, innovation, workplace, governance, citizenship, leadership and financial performance above the median of 67.3. Each of the brands that made the Top of the list had a Strong to Excellent rating, a score that falls between 70.0 and 80.
The legendary Swiss watchmaker and iconic Italian Supercar specialists were joined in the Top 10 by Lego, Bosch Group Harley-Davidson, Canon, Adidas, The Walt Disney Company, Microsoft, and Sony.
Ferrari is The Aristocrat of the automotive sector.
Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.
Ferrari closed Tuesday at 210.20 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.
Key technical indicators have turned Very Bullish. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.
The Key support is strong at 205.32 and the Key resistance is at 211.61 at the close Tuesday in NY.
Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.
UBS is now calling the stock at 365. Citi downgraded the stock from Neutral to sell. I have not seen any other Street downgrades.
Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.
Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.
I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.
Ferrari has an average rating of Buy and a consensus target price at 243.60.
The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC Thursday.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term, the Top on the Street, and adjusting it to 250/share short term.
A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen.
The stock is considered defensive in the sector.
Have a healthy week, Keep the Faith!
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of “The Red Roadmaster’s Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.