Ferrari: to make a SUV, Bernstein says.
(CercleFinance.com) - Italian luxury sportscar maker Ferrari is going to make sport utility vehicles (SUV), or something very similar, say analysts at Bernstein.
The brokerage firm thinks the Italian group needs to go beyond two-seated sports cars if it wants to grow significantly.
"It is increasingly clear that Ferrari is developing a vehicle that will have four doors, four seats, four wheel drive and will ride higher than a sedan," Bernstein writes in a research report issued today.
According to the broker, it could be something "very close" to a SUV.
Bernstein believes the market potential for a Ferrari-branded SUV could be between 2,000 and 3,00 vehicles per year.
Hence, Ferrari could become close to a 15,000 unit business after the SUV launches in 2020/2021, which could mean EBITDA of around 1.8 billion euros and EPS of over 4 euros.
As a result, Bernstein is raising its target price on the stock to 65 euros, while maintaining its "underperform" rating on the stock, due to valuation reasons.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm thinks the Italian group needs to go beyond two-seated sports cars if it wants to grow significantly.
"It is increasingly clear that Ferrari is developing a vehicle that will have four doors, four seats, four wheel drive and will ride higher than a sedan," Bernstein writes in a research report issued today.
According to the broker, it could be something "very close" to a SUV.
Bernstein believes the market potential for a Ferrari-branded SUV could be between 2,000 and 3,00 vehicles per year.
Hence, Ferrari could become close to a 15,000 unit business after the SUV launches in 2020/2021, which could mean EBITDA of around 1.8 billion euros and EPS of over 4 euros.
As a result, Bernstein is raising its target price on the stock to 65 euros, while maintaining its "underperform" rating on the stock, due to valuation reasons.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.