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Ferrari shares rise more than 4% after overall first-quarter successes

Shares in Ferrari rose more than 4% this morning, their biggest move in 3 months, after the luxury exotic carmaker reported strong first-quarter numbers and maintained its full-year guidance year online

The automaker delivered 3,567 vehicles in the quarter, up 9.7% year-over-year, and beating estimates of 3,445 deliveries. Year-to-date gains for Ferrari shares now stand at 32%, according to a summary of the Bloomberg report Thursday morning. From the same summary, here’s a look at the company’s numbers for the quarter:

Adjusted Ebitda 537 million euros, +27% y/y, estimate of 509.4 million euros (Bloomberg Consensus) Adjusted Ebitda of 385 million euros, +25% y/y, estimate of 358 million d ‘euros , +24% y/y, estimate US 270.5 million Adjusted diluted EPS EU1.62, estimate 1.47 EU Industrial free cash flow 269 million euros, -10% y/y, estimate of 252.9 million EU Revenues 1,430 million euros, +20% y/y, estimate of 1,380 million euros

Analysts liked what they saw, with RBC predicting the automaker will raise guidance later this year:

“Unsurprisingly, Ferrari did not raise guidance; Unlike other automakers this earnings season, maintaining guidance doesn’t suggest a downside shift for the rest of the year. More likely than co. will increase guidance later in the year; therefore, the broker is not concerned that the consensus is already at the upper end of the range.”

RBC has an “outperform” rating on the stock.

Morgan Stanley called the stock “too cheap” and reiterated it as a “first pick.” The investment bank said the higher first-quarter pace was helped by higher-than-expected unit volumes and better price/mix. Outperformance in the Americas, which rose 31% compared to consensus, helped offset poor EMEA numbers, said the bank, which now described as “conservative” unchanged guidance from Ferrari.

Jefferies called it a “solid pace across all metrics” also driven by price/mix.

“We have decided to reopen Purosangue orders, suspended due to unprecedented initial demand, and have launched the Roma Spider to further enrich our offer,” Ferrari said in its report.

Recall that Ferrari had been rated as “first choice” at Morgan Stanley since the beginning of March. “We believe RACE is the best-positioned company in our coverage in a highly uncertain macroeconomic and geopolitical tape. In addition to its strong fundamentals, we believe RACE has leverage to pull both growth and downside protection within ‘a wide dispersion of macro results,’ Adam Jonas and colleagues wrote in their note at the time.

Ferrari shares rise more than 4% after overall first-quarter successes

Ferrari has built on scarcity, desirability and brand values ​​around performance (“driving emotions”) and luxury, which is the key driver for continued demand. These factors make it difficult for a competitor to reproduce the Ferrari model overnight. In our view, buying a Ferrari today is not so much about the ‘engine sound’ or the ‘performance’ itself,” he continues.

“Rather, we believe it’s a combination of factors that make customers want the elements of a Ferrari: scarcity, convenience, connotations of luxury and performance (derived from the Formula 1 pedigree) and exquisite Italian design and engineering. The brand and scarcity drive unprecedented demand for the vehicles, which Ferrari is able to capitalize on by tightly controlling supply.”

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