Iconic Ferrari Bumped Up to Bank of America's Top List
(Bloomberg) -- Ferrari raced its way onto Bank of America Merrill Lynch’s US1 List.
"We continue to believe that Ferrari is an iconic asset, with strong growth prospects, which makes it a very attractively priced stock following the recent sell-off," analyst John Murphy said in a note to clients adding the company to it’s list of the best investment ideas of the bank’s fundamental equity research.
Ferrari rose 4.6 percent in Milan, the most since August 29.
New CEO Louis Camilleri "came through" on doubts that the company’s initial 2022 financial outlook introduced by the former chief would remain. And there’s "another whole leg of growth opportunity" well beyond 2022 given that targets don’t include benefit of SUV, CUV, Purosangue or even a new hypercar, the analyst said.
The pressure on the company has been "overblown," Murphy said, citing its defensive business structure that "has driven resilient financial performance even in times of economic crises."
Ferrari ADRs are down 1.5 percent over the past 12 months.
- Rates RACE buy, price target at $150
- RACE has 12 buys, 8 holds, 3 sells; average PT $138: Bloomberg Data
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