Ferrari Turns to Tech for an Electric Era Chief

By Giulio Piovaccari

Vigna, a 52-year-old Italian and physics graduate, currently runs the biggest division of chip maker STMicroelectronics (ST), where he has worked since 1995 and helped pioneer screen technology used in early Apple iPhones.

Vigna’s appointment shows Ferrari’s development strategy remains firmly anchored in making cutting-edge, high-end cars in an electric future, rather than repositioning itself towards pure luxury.

“His unique knowledge gained over 26 years working at the heart of the semiconductor industry that is rapidly transforming the automotive sector, will accelerate Ferrari’s ability to pioneer the application of next generation technologies,” the company said on Wednesday.

With cars starting at over 200,000 euros ($244,000), investors often look at Ferrari as more of a luxury firm than automotive specialist and there had been some speculation its new CEO might come from the world of premium consumer goods.

Vigna’s appointment fills a six-month vacancy at the helm of after former Chief Executive Louis Camilleri retired nearly two and a half years into the job in December for personal reasons.

Chairman John Elkann, the scion of Agnelli family which controls Ferrari through its investment firm Exor, said in a statement that the company was delighted to welcome a technology industry leader aboard.

“His deep understanding of the technologies driving much of the change in our industry, and his proven innovation, business-building and leadership skills, will further strengthen Ferrari and its unique story of passion and performance,” he said.

ELECTRIC DEADLINE

Ferrari, which already offers hybrid models, has promised to deliver its first electric car by 2025.

Pietro Solidoro, an analyst at Bestinver said Vigna’s appointment should reduce market concerns about Ferrari’s future and its path towards its first electric vehicle.

“We believe that he will be able to further accelerate Ferrari’s ability to remain ahead of the curve in next-gen technologies compared to the automotive sector,” Solidoro said.

By 1150 GMT Ferrari shares were down 1.3%, underperforming a 0.3% drop in the Italian bourse blue-chip index.

Elkann has led Ferrari on an interim basis since Camilleri, who had a more cautious approach to electrification, left.

Elkann made clear in April the new CEO would need the right technological capabilities, playing down initial speculation the new boss could have a luxury or consumer goods background.

Exor, which has invested in the luxury sector in recent months, on Wednesday dismissed a report that said investment banks had proposed that Ferrari merge with Italian fashion brand Armani.

Vigna is president of ST’s Analog, Micro-electromechanical Systems and Sensors group, its largest and most profitable operating business in 2020. He will leave on Aug. 31, the chipmaker said, and start at Ferrari the next day.

Despite recently pushing back its 2022 financial targets by a year due to the coronavirus pandemic, Ferrari booked a profit last year and has not delayed its roll-out plan for new models.

Vigna, however, faces several challenges on top of leading the automaker into an era of electric mobility.

He will have to revive Ferrari’s fortunes in Formula One after its worst racing season in 40 years in 2020.

He will also have to manage the company’s new brand extension strategy without undermining the exclusivity that has supported its premium pricing and profit.

($1 = 0.8201 euros)

(Additional reporting by Valentina Za and Sara Rossi in Milan; editing by Louise Heavens and David Clarke)

Sustainable Mobility Has Become Central for Ferrari – Chairman

“Ferrari’s future promises to be full of exciting challenges and extraordinary opportunities to capture. The new CEO will find in Maranello an organization rich in talent, ability as well as enthusiasm to build a great future,” Elkann told shareholders of Exor, the holding company of Agnelli family, which controls Ferrari.

(Reporting by Giulio Piovaccari, editing by Maria Pia Quaglia)

Ferrari Postpones 2022 Targets Due to Pandemic, Shares Dip

“We expect the prudent steps we took in 2020 and are continuing in 2021 to adjust our expenditure in response to the COVID-19 emergency, will postpone by one year the achievement of our year-end 2022 guidance,” Chairman and acting CEO John Elkann said in a statement, presenting the company’s first-quarter results.

Shares fell as much as 6.8% and by 1256 GMT were down 5.2%.

A Milan-based trader said the target postponement was not good news, since Ferrari shares were not cheap.

“This has raised concerns that the COVID-19 impact on the company could be greater than expected,” he said.

In its plan presented in 2018, the automaker behind the ‘Cavallino Rampante’ or ‘Prancing Horse’ badge guided for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to grow between 1.8-2.0 billion euros in 2022.

It targeted a margin over adjusted EBITDA of more than 38%.

However, the company said on Tuesday its “excellent” results, a “robust” net order intake and a record order book made it confident it would reach the top end of the forecasts it had set for this year.

In the first quarter, EBITDA rose 19% to 376 million euros ($452 million) versus the 369 million expected by analysts in a Reuters poll. The margin rose to 37.2% from 34% a year earlier.

Ferrari – which is still in a search process for a new chief executive to permanently replace former boss Louis Camilleri who stepped down in December – said shipments rose just 1% in the January-March period to 2,771. They were affected by geographical allocation and the phase-in pace of some new models, such as the hybrid SF90 Stradale and the Roma models.

As a result, shipments increased more than five-fold in China, Hong Kong and Taiwan, but were almost flat in EMEA and Americas regions.

($1 = 0.8319 euros)

(Reporting by Giulio Piovaccari, additional reporting by Giancarlo Navach, editing by Jason Neely and Bernadette Baum)

Earnings to Watch Next Week: ON Semiconductor, Ferrari, General Motors and Moderna in Focus

Earnings Calendar For The Week Of May 3

Monday (May 3)

IN THE SPOTLIGHT: ON SEMICONDUCTOR

ON Semiconductor, a semiconductors supplier company, is expected to report its first-quarter earnings of $0.34 per share, which represents year-over-year growth of over 240% from $0.10 per share seen in the same quarter a year ago.

The Phoenix, Arizona-based company’s revenue would grow over 14% to $1.4 billion.

“The company is the only one in our coverage to see weaker gross margins cycle to cycle. Notably, this is happening despite an improvement in end-market mix toward industrial and autos and away from consumer and computing, where ON has become more selective in recent quarters,” noted Craig Hettenbach, equity analyst at Morgan Stanley.

“We like the message from the new CEO of improving mix of the business but think this has already been reflected in meaningful multiple expansion in the stock. Another thing to consider is the potential for lost revenue as the company deemphasizes some products.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 3

Ticker Company EPS Forecast
ENBL Enable Midstream Partners $0.17
EL Estée Lauder $1.28
WEC Wisconsin Energy $1.47
EPD Enterprise Products Partners $0.50
ON ON Semiconductor $0.34
ITRI Itron $0.40
ALXN Alexion Pharmaceuticals $3.08
L Loews $0.95
CNA CNA Financial $0.95
EPRT Essential Properties Realty Trust Inc $0.29
VRNS Varonis Systems -$0.13
QGEN Qiagen $0.63
RMBS Rambus $0.28
WWD Woodward $0.82
REGI Renewable Energy $0.20
IRBT Irobot $0.06
SCI Service International $0.98
ITUB Itau Unibanco $0.12
FN Fabrinet $1.15
CAR Avis Budget -$2.38
JKHY Jack Henry Associates $0.86
O Realty Ome $0.85
BRX Brixmor Property $0.40
UE Urban Edge Properties $0.22
AWK American Water Works $0.73
NSP Insperity $1.56
APO Apollo Global Management $0.59
RBC Regal Beloit Corporation $1.68
ADC Agree Realty $0.83
CR Crane $1.31
OGS One Gas $1.78
CHGG Chegg $0.31
CVI CVR Energy -$1.23
OHI Omega Healthcare Investors $0.82
XPO XPO Logistics $0.93
FLS Flowserve $0.20
CBT Cabot $0.97
LEG Leggett & Platt $0.41
FANG Diamondback Energy $1.89
SHO Sunstone Hotel Investors -$0.15
KMT Kennametal $0.21
SEDG Solaredge Technologies Inc $1.01
VNO Vornado Realty $0.63
WMB Williams Companies $0.28
AWR American States Water $0.48
MWA Mueller Water Products $0.14
MOS Mosaic $0.50
CC Chemours Co $0.68
LGND Ligand Pharmaceuticals $1.05
CORT Corcept Therapeutics $0.21
CIB Bancolombia $0.34
SANM Sanmina $0.82
EGOV NIC $0.24
AMG Affiliated Managers $4.24

Tuesday (May 4)

IN THE SPOTLIGHT: FERRARI

Ferrari, an Italian luxury sports car manufacturer, is expected to report its first-quarter earnings of $1.26 per share, which represents year-over-year growth of over 27% from $0.99 per share seen in the same quarter a year ago.

The company which is known for its prancing horse logo would post revenue growth of more than 24% to around $1.27 billion

“We find the long-term stability of Ferrari’s revenue, addressable market growth, expansive profit margin, and solid returns on invested capital throughout economic cycles to be compelling reasons to invest at the right price,” noted Richard Hilgert, senior equity analyst at Morningstar.

“Because of its exclusive clientele of high-net-worth individuals, we believe the company will show resiliency during periods of economic uncertainty, such is currently the case with the coronavirus pandemic. While we are not entirely averse to paying up for stocks like Ferrari that possess a wide economic moat and stable economic profits through business cycles, we think Ferrari stock will regularly trade at rich, luxury goods valuation multiples.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 4

Ticker Company EPS Forecast
ARNC Arconic Inc $0.29
CMI Cummins $3.46
CVS CVS Health $1.71
MPLX MPLX $0.61
PFE Pfizer $0.79
SYY Sysco $0.20
TRI Thomson Reuters USA $0.40
MPC Marathon Petroleum -$0.72
NS NuStar Energy $0.28
BR Broadridge Financial Solutions $1.67
ETRN Equitrans Midstream Corp $0.19
DD DuPont $0.77
LDOS Leidos $1.49
D Dominion Resources $1.08
EXPD Expeditors International Of Washington $1.00
RACE Ferrari $1.26
LPX Louisiana Pacific $2.67
CVLT Commvault Systems $0.49
ZBH ZIMMER BIOMET HDG. $1.51
UAA Under Armour Inc $0.04
XYL Xylem $0.37
UA Under Armour C share $0.04
INGR Ingredion $1.62
SEE Sealed Air $0.71
INCY YTE $0.65
BERY Berry Plastics $1.31
LGIH LGI Homes $2.37
BG Bunge $1.55
PCRX Pacira $0.58
RGEN Repligen $0.43
VSH Vishay Intertechnology $0.45
LANC Lancaster Colony $1.26
CTLT Catalent $0.76
KKR KKR & Co LP $0.62
CWH Camping World Holdings $0.54
RHP Ryman Hospitality Properties -$0.78
AME Ametek $1.02
WLK Westlake Chemical $1.56
IAA IAA Inc $0.46
VMC Vulcan Materials $0.41
GPN Global Payments $1.77
IPGP IPG Photonics $1.07
HSIC Henry Schein $0.83
IT Gartner $1.01
CRL Charles River Laboratories $2.19
HEP Holly Energy Partners $0.48
NXST Nexstar Broadcasting $3.11
MLM Martin Marietta Materials $0.51
LAMR Lamar Advertising $1.17
IDXX Idexx Laboratories $1.72
FSS Federal Signal $0.33
MIC Macquarie Infrastructure $0.48
NNN National Retail Properties $0.64
SABR Sabre -$0.51
MYGN Myriad Genetics -$0.10
BEN Franklin Resources $0.74
ZBRA Zebra Technologies $4.41
COP ConocoPhillips $0.57
ETN Eaton $1.25
HI Hillenbrand $0.92
CMP Compass Minerals International $0.72
VRSK Verisk Analytics $1.25
JBGS JBG SMITH Properties $0.31
LYFT Lyft Inc -$0.54
AMCR Amcor PLC $0.18
LSI LIFE STORAGE $1.01
STAG STAG Industrial $0.48
XP XP Inc $0.20
RPAI Retail Properties Of America $0.20
OUT Outfront Media -$0.17
MANT ManTech International $0.83
MED Medifast $2.72
PAYC Paycom Software $1.42
AKAM Akamai $1.30
LSCC Lattice Semiconductor $0.19
ARWR Arrowhead Research $0.34
AFG American Financial $1.74
TTEC TeleTech $1.00
ANET Arista Networks $2.38
GMED Globus Medical $0.36
INSP Inspire Medical Systems Inc -$0.65
ENLC EnLink Midstream -$0.02
IOSP Innospec $1.02
PVG Pretium Resources $0.21
HLF Herbalife $1.06
RDN Radian $0.67
TMUS T-Mobile Us $0.53
ESE ESCO Technologies $0.55
HST Host Hotels & Resorts -$0.15
PKI PerkinElmer $3.03
BKH Black Hills $1.60
ATVI Activision Blizzard $0.69
XLNX Xilinx $0.75
WTS Watts Water Technologies $0.98
AMRC Ameresco $0.10
CZR Caesars Entertainment -$1.77
MCY Mercury General $1.25
MRCY Mercury Systems $0.63
CPK Chesapeake Utilities $1.83
AIZ Assurant $1.96
LPSN LivePerson -$0.14
DOOR Masonite International $1.78
PXD Pioneer Natural Resources $1.82
EQC Equity Commonwealth $0.01
PEAK Healthpeak Properties Inc $0.39
DVN Devon Energy $0.35
RNG RingCentral $0.25
EPAY Bottomline Technologies $0.27
MTCH Match Group $0.46
JAZZ Jazz Pharmaceuticals $3.69
PRU Prudential Financial $2.68
NMIH NMI $0.59
DLB Dolby Laboratories $0.67
HASI Hannon Armstrong Sustnbl Infrstr Cap $0.40
MPWR Monolithic Power Systems $1.33
H Hyatt Hotels -$1.33
WU Western Union $0.45
DEI Douglas Emmett $0.43
EXAS Exact Sciences -$1.04
ALGT Allegiant Travel -$2.59
PTCT PTC Therapeutics -$1.59
Z Zillow $0.26
NRZ New Residential Investment $0.34
LITE Lumentum Holdings Inc $1.42
SU Suncor Energy USA $0.44
MELI MercadoLibre $0.40
HAE Haemonetics $0.67
TDG TransDigm $2.52
IOVA Iovance Biotherapeutics -$0.48
QTRX Quanterix -$0.32
VST Victory Square Tech -$2.04
GRFS Grifolsbarcelona $0.23
BBD Banco Bradesco $0.11
CHT Chunghwa Telecom $0.33

Wednesday (May 5)

IN THE SPOTLIGHT: GENERAL MOTORS

The auto manufacturer is expected to report its first-quarter earnings of $1.02 per share, which represents year-over-year growth of over 64% from $0.62 per share seen in the same quarter a year ago. The Detroit, Michigan-based company would post revenue growth of about 2% to around $33.3 billion.

“We are Overweight based on GM’s diversified portfolio, with multiple ways for GM to enhance shareholder value, through: EVs, ICE and Autonomy. GM also has leading North American margins, generates strong cash flow, and has a robust balance sheet,” noted Adam Jonas, equity analyst at Morgan Stanley.

“We believe that the market is underestimating the SOTP of the GM enterprise via: 1) Legacy ICE, 2) GM EV, 3) GM’s Ultium Battery business, 4) China JVs, 5) GM Finco, 6) GM Cruise, 7) hidden franchise value in brands such as Corvette and 8) GM Connected Services. GM management has a proven track record to allocate capital away from structurally challenged areas towards re-positioning the business model.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 5

Ticker Company EPS Forecast
UTHR United Therapeutics $2.60
HLT Hilton Worldwide $0.05
PNW Pinnacle West Capital $0.28
CERN Cerner $0.74
HFC HollyFrontier -$0.45
ODP Office Depot $1.02
AEIS Advanced Energy Industries $1.27
OMI Owens Minor $0.97
DNB Dun & Bradstreet $0.21
SMG Scotts Miracle-Gro $5.51
DOC Physicians Realty $0.27
WRK WESTROCK $0.62
GOLD Randgold Resources $0.26
TT Trane Technologies PLC $0.62
CIM Chimera Investment $0.31
SRE Sempra Energy $2.60
NYT New York Times $0.15
AVA Avista $0.85
ROCK Gibraltar Industries $0.61
SPR Spirit AeroSystems -$0.93
PEG Public Service $1.12
BWA Borgwarner $0.92
GM General Motors $1.02
JLL Jones Lang LaSalle $0.58
SBGI Sinclair -$2.18
EMR Emerson Electric $0.90
NI NiSource $0.77
ABC AmerisourceBergen $2.50
BRKR Bruker $0.32
FUN Cedar Fair -$1.89
IONS Ionis Pharmaceuticals -$0.47
EXC Exelon $0.42
WAT Waters $1.57
CDW CDW $1.54
CRTO Criteo $0.50
CLH Clean Harbors $0.26
HZNP Horizon Pharma $0.19
SPWR SunPower $0.00
FLEX Flextronics International $0.36
BKNG Booking Holdings Inc -$7.26
QLYS Qualys $0.69
ATO Atmos Energy $2.05
ALL Allstate $3.85
GIL Gildan Activewear USA $0.20
KLIC Kulicke And Soffa Industries $1.20
PTVE Pactiv Evergreen $0.03
LNC Lincoln National $1.48
TTGT TechTarget $0.37
RLJ RLJ Lodging -$0.26
ADPT Adeptus Health -$0.41
PRI Primerica $2.38
ZNGA Zynga $0.09
UNM Unum $1.01
HPP Hudson Pacific Properties $0.46
RUN Sunrun Inc -$0.03
WTRG Essential Utilities Inc $0.66
EPR EPR Properties $0.44
FLT Fleetcor Technologies $2.70
QRVO Qorvo $2.44
UGI UGI $1.72
CDAY Ceridian HCM Holding Inc $0.09
CW Curtiss-Wright $1.30
FMC FMC $1.52
CTSH Cognizant Technology Solutions $0.94
SIMO Silicon Motion Technology $0.94
AEL American Equity Investment Life $0.59
ANSS Ansys $0.85
MET MetLife $1.48
XEC Cimarex Energy $1.70
VAC Marriottacations Worldwide -$0.29
SRC Spirit Realty Capital New $0.73
TNDM Tandem Diabetes Care -$0.15
SJI South Jersey Industries $1.19
EQT EQT $0.28
ETSY ETSY Inc $0.84
MFC Manulife Financial USA $0.59
NBIX Neurocrine Biosciences $0.46
CCMP Cabot Microelectronics $1.94
EQH AXA Equitable Holdings Inc $1.23
MRO Marathon Oil $0.14
CF CF Industries $0.57
STN Stantec USA $0.42
RYN Rayonier $0.08
RSG Republic Services $0.86
FRT Federal Realty Investment $1.02
PDCE PDC Energy $0.83
PYPL PayPal $1.01
BFAM Bright Horizons Family Solutions $0.10
BE Bloom Energy Corp -$0.08
LBTYA Liberty Global Class A Ordinary Shares $0.09
HR Healthcare Realty $0.42
MTG MGIC Investment $0.42
NUVA NuVasive $0.33
ALB Albemarle $0.79
STAA STAAR Surgical $0.02
CPA Copa -$2.21
NUS Nu Skin Enterprises $0.72
TWO Two Harbors Investment $0.21
ACAD Acadia Pharmaceuticals -$0.54
RCII Rent-A-Center $1.11
LOPE Grand Canyon Education $1.67
ORA Ormat Technologies $0.40
KW Kennedy Wilson $0.27
LHCG LHC $1.26
SLF Sun Life Financial USA $1.08
FOXA Twenty-First Century Fox $0.57
FNV Franco Nevada $0.79
QTWO Q2 $0.07
UBER Uber -$0.56
SBRA Sabra Health Care Reit $0.40
RKT Rocket Cos. Inc. $0.89
MDU MDU Resources $0.20
TRMB Trimble Navigation $0.56
GDOT Green Dot $0.93
APA Apache $0.69
HUBG HUB $0.46
KAI Kadant $1.36
SBH Sally Beauty $0.16
BCH Banco De Chile $0.40
DAR Darling Ingredients $0.56
RARE Ultragenyx Pharmaceutical -$1.25
TRNO Terreno Realty $0.39
CCU Compania Cervecerias Unidas $0.32
CENTA Central Garden Pet $1.08
RCKT Rocket Pharma -$0.77
CUB Cubic $0.41
AVNS Avanos Medical Inc $0.18
FMS Fresenius Medical Care $0.45
UGP Ultrapar Participacoes $0.04
ELP Companhia Paranaense De Energia $0.03
LBTYK LIBERTY GLOBAL $0.09
FOX Twenty First Century Fox $0.58
NVO Novo Nordisk A Fs $0.79
BAK Braskem $1.38
AEBZY Anadolu Efes ADR $0.01
OMVJF OMV $0.97
SRPT Sarepta Therapeutics -$2.01
VIV Telefonica Brasil $0.13
ES Eversource Energy $1.10
GBT BMTC Group -$1.02

Thursday (May 6)

IN THE SPOTLIGHT: MODERNA

Moderna Inc, an American biotech company focused on drug discovery, is expected to report its first-quarter earnings of $2.36 per share, up about 700% from the same quarter a year ago. The Massachusetts-based biotechnology company’s revenue would surge to $1.97 billion.

“We are Equal-weight Moderna. While we believe there is long-term upside for Moderna, we believe the significant valuation increase associated with the success of the COVID-19 vaccine limits the near-term upside,” noted Matthew Harrison, equity analyst at Morgan Stanley.

“The company has taken an industrialized approach to developing mRNA-based therapeutics and has rapidly generated a broad pipeline of 21 programs, 11 of which have entered clinical development. We believe Moderna’s mRNA drug development platform is more diversified and scalable compared with competitors and is validated through broad partnerships with Merck and AstraZeneca. We see vaccines and rare diseases as the key valuation drivers of the company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 6

Ticker Company EPS Forecast
PZZA Papa John’s International $0.55
AY Atlantica Yield -$0.13
SUN Sunoco $0.69
TECH Bio Techne $1.50
ZTS Zoetis $1.04
EPAM EPAM Systems $1.69
APTV Aptiv PLC $0.77
MGA Magna International USA $1.59
VER VEREIT $0.78
WCC Wesco International $0.76
BUD Anheuser-Busch $0.48
IRM Iron Mountain $0.64
LIN Linde PLC $2.26
BDX Becton, Dickinson and Co. $3.04
AES AES $0.31
BLD TopBuild Corp $1.93
HWM Howmet Aerospace Inc $0.20
BIP Brookfield Infrastructure $0.87
PENN Penn National Gaming $0.28
K Kellogg $0.95
PWR Quanta Services $0.74
BLL Ball $0.67
STWD Starwood Property $0.51
SEAS SeaWorld Entertainment -$0.83
CNP CenterPoint Energy $0.50
ALE Allete $1.11
WD Walker & Dunlop $2.01
COMM CommScope $0.31
PRLB Proto Labs $0.37
VG Vonage $0.05
AMRS Amyris -$0.16
BKI Black Iron Inc. $0.51
PBH Prestige Brands $0.79
W Wayfair Inc. $0.27
REGN Regeneron Pharmaceuticals $8.79
NSIT Insights $1.44
FIS Fidelity National Information Services $1.25
TRGP Targa Resources $0.15
EVOP EVO Payments Inc $0.12
CNQ Canadian Natural Resource USA $0.67
MUR Murphy Oil -$0.16
XRAY Dentsply International $0.55
IDCC InterDigital -$0.01
EVRG Evergy Inc $0.47
CAH Cardinal Health $1.57
EPC Edgewell Personal Care $0.62
THS TreeHouse Foods $0.35
STOR STORE Capital Corp $0.45
HAIN Hain Celestial $0.38
ADNT Adient PLC $0.59
MT Arcelormittal $1.57
OGE OGE Energy $0.18
NJR New Jersey Resources $1.17
MRNA Moderna Inc $2.36
BCRX BioCryst Pharmaceuticals -$0.26
FOCS Focus Financial Partners Inc $0.86
HII Huntington Ingalls Industries $2.52
IIVI Ii Vi $0.88
TPR Tapestry Inc $0.30
ARW Arrow Electronics $2.27
BLDR Builders Firstsource $0.81
INSM Insmed -$1.02
BECN Beacon Roofing Supply $0.01
NWSA News Corp $0.06
XLRN Acceleron Pharma -$0.83
QDEL Quidel $4.87
IHRT Iheartmedia -$0.44
AL Air Lease $1.01
Y Alleghany $4.65
AVLR Avalara Inc -$0.11
ALTR ALTAIR ENGINEERING $0.20
SEM Select Medical $0.65
CGNX Cognex $0.35
LYV Live Nation Entertainment -$1.77
TDC Teradata $0.46
CABO Cable One Inc $10.22
KWR Quaker Chemical $1.51
APLE Apple Hospitality $0.03
CLNE Clean Energy Fuels $0.01
ICUI ICU Medical $1.53
MCHP Microchip Technology $1.74
MTX Minerals Technologies $1.07
PTON Peloton Interactive, Inc. -$0.11
ANGI Angie’s List -$0.04
ENV Envestnet $0.61
CDK Cdk Global $0.68
REG Regency Centers $0.75
AIG AIG $0.99
SQ Square $0.16
MSI Motorola Solutions Msi $1.62
RVLV Revolve $0.13
SFM Sprouts Farmers Market $0.62
OLED Universal Display $0.67
PODD Insulet $0.06
AMH American Homes 4 Rent $0.31
PK Park Hotels & Resorts Inc -$0.55
EXPE Expedia -$2.52
TRIP TripAdvisor -$0.31
LNT Alliant Energy $0.67
FOXF Fox Factory $0.82
HTA Healthcare Of America $0.43
EXEL Exelixis $0.05
POST Post $0.55
CSOD Cornerstone OnDemand $0.42
SYNA Synaptics $1.87
ED Consolidated Edison $1.36
DBX Dropbox $0.30
IRTC iRhythm Tech -$0.87
DRH DiamondRock Hospitality -$0.14
MCK McKesson $5.01
YELP Yelp -$0.26
DIOD Diodes $0.78
CWK Cushman & Wakefield plc -$0.04
RGA Reinsurance Of America $0.07
STMP Stamps $1.63
EOG EOG Resources $1.50
BAP Credicorp USA $2.37
AAON AAON $0.24
MTD Mettler Toledo International $5.65
PCTY Paylocity $0.66
BCC Boise Cascade $2.50
NFG National Fuel Gas $1.21
MTZ MasTec $0.77
TPL Texas Pacific Land $5.77
FNF Fidelity National Financial $1.28
PHI Philippine Long Distance Telephone $0.61
NWS News $0.05
CYRX Cryoport Inc -$0.21
PPL PPL $0.61
NRG NRG Energy $1.64
NKTR Nektar Therapeutics -$0.75
GLUU Glu Mobile $0.07
PLUG Plug Power -$0.08
MNST Monster Beverage $0.61
NTLA Intellia Therapeutics Inc -$0.66
CTRE CareTrust REIT $0.36
ADT ADT $0.15
ARNA Arena Pharmaceuticals -$2.19
SWX Southwest Gas $1.83
MIDD Middleby $1.63
MRTX Mirati Therapeutics -$2.13
JOBS 51job $0.43
PFSI Pennymac Financial Services $5.79
KRTX Karuna Therapeutics -$1.06
MGEE Mge Energy $0.81
ITCI Intra Cellular Therapies -$0.81
XNCR Xencor -$0.77
SATS EchoStar -$0.02
DRNA Dicerna Pharmaceuticals -$0.28
IGMS IGM Biosciences -$0.98
RVNC Revance Therapeutics -$1.19
PAR Par Technology -$0.37
ACIW ACI Worldwide -$0.12
AG First Majestic Silver $0.07
ING Ing Groep $0.23
GFI Gold Fields $0.64
ABEV Ambev $0.03
AGO Assured Guaranty $0.56
MMS Maximus $0.82

Friday (May 7)

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CI Cigna $4.37
VTR Ventas $0.02
LEA Lear $2.95
MD Mednax $0.16
AMCX AMC Networks $2.01
ENB Enbridge USA $0.57
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FLR Fluor New $0.04
ESNT Essent $1.22
UNVR Univar Solutions Inc $0.32
HE Hawaiian Electric Industries $0.36
RICOY Ricoh Company -$0.08
IBP Installed Building Products $1.04
TU Telus USA $0.23
SSUMY Sumitomo ADR -$0.02
CNK Cinemark -$1.47
CVE Cenovus Energy USA -$0.02
LXP Lexington Realty $0.03

 

Ferrari Unveils First Details of Special Edition V12 Car Based on 812 Superfast

An aggressive roll-out plan of new models, which was not delayed last year by the COVID-19 pandemic, has been a key part of the company’s recent strategy to support growth.

Powered by a 830-horsepower engine, the new car will be a limited edition one based on Ferrari’s 12-cylinder 812 Superfast model, it said in a statement.

Ferrari’s limited edition cars, which in the past have been produced in a few hundred units each, are even more exclusive models, with significant technological and aerodynamic upgrades.

They are reserved for the house’s selected and most faithful clients, those who already own one or more Ferraris.

The ‘Cavallino Rampante’ or ‘Prancing Horse’ will unveil next year its first ever SUV, called Purosangue (Thoroughbred), while Chairman John Elkann said last week the company would continue with its electrification strategy, with a first full-electric Ferrari to be presented in 2025.

Ferrari will provide further details about the new model, including its name, price, planned production figures and timings for first deliveries, in a virtual event on May 5.

(Reporting by Giulio Piovaccari; Editing by Steve Orlofsky)

Ferrari Shares Jump Over 7% on Strong Q3 Earnings; Analysts Say ‘Buy’

Ferrari, an Italian luxury sports car manufacturer, reported a better-than-expected profit in the third quarter and forecasts this year’s earnings at the top of its previous guidance band, sending its shares up over 7% on Tuesday.

The company, known for its prancing horse logo reported earnings of EUR 330 million, nearly $386 million, or about $1.08 a share, up from EUR 311 million, about $1.05 a share, seen a year ago. That was higher than the market expectations of 96 cents per share. Ferrari said its revenue totalled EUR 888 million, or $1.04 billion, down 3% from a year earlier.

Ferrari forecasts adjusted core earnings of around EUR 1.125 billion in 2020, compared with the previous prediction of EUR 1.075-1.125 billion.

“We think Ferrari is back in the race in 2020 second half, barring a second wave that may close operations and dealers again,” said Richard Hilgert, senior equity analyst at Morningstar.

“Our model already reflected the high end of management guidance with an EPS estimate of EUR 2.80. However, due to the time value of money since our last update, we raised our fair value estimate to EUR 101 from EUR 99. While we are not averse to paying up for a high-quality, wide-moat-rated stock like Ferrari, the shares remain 1-star rated, overvalued relative to our forecasts for revenue growth, cash flow, and return on invested capital,” Hilgert added.

Ferrari shares closed 7.6% higher at EUR 168.30 on Tuesday; the stock is up over 10% so far this year.

Executive Comments

“The new guidance implied a ‘very strong’ fourth quarter, with record quarterly volumes, revenues and earnings before interest, tax, depreciation and amortization (EBITDA). Solid proof that we are now running on all cylinders. We’ll enter 2021 with a very strong order book, we should have a pretty strong year,” said chief executive Louis Camilleri, Reuters reported.

Ferrari Stock Price Forecast

Ten equity analysts forecast the average price in 12 months at $220.72 with a high forecast of $265.00 and a low forecast of $175.55. The average price target represents a 12.61% increase from the last price of $196.01. From those ten analysts, eight rated “Buy”, one rated “Hold” and one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $265 with a high of $350 under a bull-case scenario and $130 under the worst-case scenario. The firm currently has an “Overweight” rating on the luxury automaker’s stock.

“We view Ferrari as our highest quality stock and we expect meaningful growth in: shipments, ancillary revenue opportunity and growth in EBITDA margins. The valuation is comparable to leading luxury goods player, Hermès (covered by Edouard Aubin), which we think is justified,” said Adam Jonas, equity analyst at Morgan Stanley.

Ferrari had its target price lifted by JP Morgan to $180 from $151. They currently have a neutral rating on the stock. Several other analysts have also recently commented on the stock. Credit Suisse Group reiterated a buy rating and issued a $198 price target on shares of Ferrari. UBS Group increased their price target to $212 from $209 and gave the company a buy rating.

We think it is good to buy at the current level with a target of $220 as 100-day Moving Average and 100-200-day MACD Oscillator signal a buying opportunity.

Analyst Comments

“Growth potential and strong execution. Global shipments of <10k units in 2020, growing at a 9.0% CAGR to 2030 ending at ~22k shipments. Adj. EBITDA margins rise to 34% in 2021 and 38% in 2022 on improved mix and pricing after launching 5 new models in 2020 and 2 in 2021,” Morgan Stanley’s Jonas added.

“Ferrari trades at a justified premium to luxury brands, in line with the luxury leader, Hermes, albeit with more opportunity to grow organically via new customers, new segments and geographically in China & Asia-Pac, as well as exhibiting a unique moat with a world-renowned brand and a 12+ month customer order book.”

Upside and Downside Risks

Upside: 1) Higher revisions to guidance. 2) Shipments higher, ASPs higher, margins higher. 3) Commoditization of EVs mean more value is placed on Ferrari ICE engine – highlighted by Morgan Stanley.

Downside: 1) Weakness in demand or production issues. 2) Execution risk around brand expansion. 3) Increases in engineering costs to EV migration & EVs could hurt the value proposition. 4) F1 R&D costs higher than expected. 5) Austerity limits the perception of Ferrari owners.

Check out FX Empire’s earnings calendar

Ferrari’s Price Target Raised to $265 on Growth Optimism, $350 in Best-Case Scenario: Morgan Stanley

Ferrari N.V., known as New Business Netherlands NV, is entering a higher phase of growth and a tech transition that takes investor thinking beyond the limits of luxury goods comps. and can grow the super-luxury pie much faster and more sustainable than the market expects, wrote Morgan Stanley’s equity analyst Adam Jonas, who raised his base-case forecast of an Italian luxury sports car manufacturer to $265 from $180.

This upgrade was largely driven by Morgan Stanly’s increased views of growth, margin and multiple. They forecast growth for RACE of over 7% and said have greater conviction that Ferrari can capture share in the high-performance super-luxury EV segment, which is they also forecast to grow at a CAGR of 19.5% through 2040.

Morgan Stanley forecast long term OP margin assumption of 26%, which is marginally above the pre-COVID-19 level of 24.4%.

Ferrari N.V. (RACE) shares have recovered completely from the COVID-19 panic selling seen in March, gaining over 40% from low of $122. The stock is up about 10% so far this year.

“In 2022 we now forecast EBITDA of 1.87 billion euros vs Consensus of 1.74 billion euros. In outer year 2025, previously we were forecasting EBITDA of 2.34 billion euros in 2025; now we’re at 2.65 billion euros. We expect EBITDA margins grow from 32% in 2020 to 40% by 2023 and steady out at 39% from 2027,” Morgan Stanley’s Jonas said.

“We account for a more aggressive capex spend to account for investments in powertrain & an EV platform, software updates, battery cell R&D, etc. Over the next 5 years, from 2021 to 2025, we expect cumulative Capex of 6.0 billion euros vs. 4.6 billion euros previously.”

Morgan Stanley target price under a bull-case scenario is $350 and $130 under the worst-case scenario. Several other equity analysts have also updated their stock outlook. JP Morgan raised the target price to $151 from $147; however, UBS lowered its target price to $176 from $180; Credit Suisse cut the target price to $198 from $205.

Seven analysts forecast the average price in 12 months at $205.37 with a high forecast of $235.00 and a low forecast of $147.00. The average price target represents a 10.72% increase. From those seven, six analysts rated ‘Buy’, one analyst rated ‘Hold’ and none rated ‘Sell’, according to Tipranks.

“1) We expect the unveiling of the Purosangue to be a catalyzing event and an inflection point for the growth trajectory to steepen. 2) We also look for an update to the 2022 target as well as other disclosure of medium to long-term targets at a Capital Markets Day that we expect in 2021. We would urge investors to get ahead of these potential catalysts as we think the market has done too perfect a job pricing Ferrari in the short term,” Jonas added.

“As Ferrari is considered a bond like proxy and ‘safe haven’ asset by investors, as the yield curve steepens, investors may find a better opportunity cost with other equities to derive yield elsewhere. We note that Ferrari generates substantial FCF already today ~$3.50/Share on MSe in 2022, and pays a dividend yield of <1%.”