Ferrari-Win on Sunday,Sell on Monday

Ferrari is an Italian luxury sports car manufacturer and motorsport company with prominent presence in the Formula 1 world championship and the Le Mans.Ferrari was founded by Enzo Ferrari in 1947 out of Maranello, Italy.The origins can be traced back to 1939 when Enzo Ferrari created a special motorsport division within Alfa Romeo.The company then took over 8 years to finally build their first Ferrari badged car the Ferrari 125 S.Ferrari was a subsidiary of FCA up until 2015 and started trading in the NYSE but since then corporate restructuring has led to Ferrari being a separate brand which started trading on January 4th, 2016 on the Borsa Italiana with an initial price of 56$.

Ferrari currently trades at 250-255$ with a market cap of 63B $.Their success can be linked to their history and the racing pedigree.They have always been a leading brand in the motorsport space and have dominated motorsport since their start.They originally made road cars just to meet FIA regulations for races but as time progressed and management changed ,the road legal car manufacturing division grew.The image associated with Ferrari is the unique selling point for the car manufacturer.

Ferrari has a price forecast of 260$ with a high prediction of 350$ and a low estimate of 150$.The median price represents a 2% increase from the last trading price.The brand was highly effected by the pandemic as consumer spending moved away from luxury goods but the brand has recovered since.The new and used car market globally has strengthened and this acts as a catalyst for growth of the brand.The company also operates Ferrari World which is an amusement park in Abu Dhabi which is also seeing rising tourist attraction in the recovering economy.

Ferrari is the most well known sports car manufacturer around the world.They have their strong brand image to rely on.In markets where brands are unable to differentiate themselves and market themselves, Ferrari is still able to identify their audience. In fact, there is so much brand loyalty that a recent study by CNBC found that 73% of Ferrari owners only owned Ferrari manufactured vehicles.There is excessive demand for the car and this is evident from the fact that buyers are being put on 25-30 month waitlists for the products.Their association with brands such as Puma also improve brand recognition and increase exclusivity.Ferrari is transforming itself from a sports car manufacturer to a lifestyle brand as seen by the launch of the clothing and watch business. They are also very environment friendly as they are trying to phase out from the internal combustion engine to hybrid powertrains and even electric engines potentially.The brand still focuses most of its resources on motorsports and is true to the vision of Enzo Ferrari of creating the best sports car for generations to come.They have started their tailor made programmes for individuals looking for bespoke vehicles and have also designed one off cars for influential people like the Sultan of Brunei.The heritage and legacy around the brand is the most essential asset for the brand.Their recent launches such as the 296 GTB show their dependence on older name plates as a source to attract customers.The brand has also been involved in many controversies such as the Cease and Desist cases back in 2016 and 2018 with musician Deadmau5 and fashion designer Philipp Plein. They have been extremely stringent in the use of their brand without permission and take foremost importance to maintain their reputation.They also came into highlight when they asked for special considerations to the EU’s policy of all electric cars by 2035. Their innovation and their constant strive for perfection has led to the production of renowned hyper-cars such as the Ferrari LaFerrari.For the future of the brand, it is likely to stay independent and remain a boutique car manufacturer and is currently designing their first ever SUV called the Purosange which is going to create a wave in the luxury car markets around the world.