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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 05 January 2018 at 11:14 GMT

Ferrari accelerates into 2018

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  • Ferrari shares up over 10% in 2018
  • Carmaker features impressive top line, margin
  • Automotive sector outperformed in December 2017
Ferrari
Not just a pretty face? Photo: bondvit / Shutterstock.com 

On today's Morning Call, Saxo Bank head of equity strategy Peter Garnry reported that the automotive industry was the top performer over the past month with an overall gain of 5.5%.

Saxo Bank's Equity Radar lists Peugeot, Renault, Ferrari, Geely, and Magna International as its top companies (full disclosure: Geely holds a controlling stake in Saxo Bank), with the first three names having posted the most impressive share price gains so far this year.

Ferrari shares have risen from a January 2 low near €83 to €93.55 as of midday today, with Garnry pointing to high oil prices and a robust luxury-sector environment as among the key factors for the storied maker of high-end sport and race cars.

"Higher oil prices are leading to increased luxury goods consumption in the Middle East," says Garnry, adding APAC-region luxury consumption remains robust as well.

Looking at Ferrari's fundamentals, Garnry says that "we feel that the company should be supported as it has outperformed on top line growth and is still seeing its margins being expanded".

Ferrari's EBIT margin stood at 24.2% in Q3'17 versus 7.5% at GM and 10.3% at BMW, to name two more mainstream carmakers.

Ferrari (RACE:xmil):
Ferrari

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Source: Saxo Bank 

— Edited by Michael McKenna
Front page photo credit: Tanase Sorin Photographer / Shutterstock.com

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