Ferrari CEO Says Brexit Hasn't Put The Brakes On His Company's Numbers

Ferrari NV RACE RACE reported strong Q2 results, with the EPS and shipments ahead of the estimates.

Morgan Stanley’s Adam Jonas reiterated an Overweight rating on the company, while raising the price target from $54 to $56.

Another Impressive Quarter

Jonas mentioned that the company “delivered another impressive quarter, with EPS of €0.55, adjusted EBITDA of €217 million on shipments of 2,214 units.”

Management left the FY16 guidance mostly unchanged, while CEO Sergio Marchionne stated that the record results were “totally in line with the forecast,” and that the backlog and order book reflect Ferrari’s brand and product strength.

Related Link: Ferrari's Pricing Power An Underappreciated Profit Driver

No Impact From Brexit

“Sergio also indicated that Brexit has not had an impact in the numbers yet. This underscores the stability of the story, and supports our belief that Ferrari can be a systematic and steady earnings beat story that can and should lead to the modest multiple expansion,” Jonas stated.

Outlook

The analyst believes the ramp of GTCLusso in 2H, along with the launch of the open-top LaFerrari in 2017 and the potential medication of the F12berlinetta could reverse the mix headwinds in 2017.

“Over the long-term, we believe the market will grow to appreciate the stability in Ferrari's cash flows and the experiential nature of what Ferrari has to offer its consumers,” the analyst added.

The EPS estimate for 2016 has been raised from €1.77 to €1.89, mostly to reflect the Q2 beat.

Full ratings data available on Benzinga Pro.