ICE Reddit Mentions | ChartExchange

I have about 14% upside left in Ferrari at the moment. Fair value range today I’d say is 380-460 so slightly weighted to the upside. Its had a huge run-up the last week into and post earnings so keep that in mind. It must be viewed from a completely different lens as you mention given operating margins 29x higher than Porsche and 25x the ROIC lol. It can’t be compared to automakers. It’s a unique asset combining luxury, incredible precise technology and engineering, and carrying the brand power of a household staple. My mom doesn’t know what a Birkin bag is but she knows what a Ferrari is. Rolex sells 80x as many watches and Hermes sells 10x as many Birkins. It will continue to be a unique asset for the foreseeable future, and their CMD last year and unveiling of the Luce provided a real opportunity in a name that effectively can manage their own growth, thrive in a K-shaped economy and has a long term structural growth story as the average age of a Ferrari buyer has shifted dramatically (under 40 from 20% 5 years ago to 40% of sales now) effectively lengthening the lifetime value of that customer as 85% of Ferrari buyers already own a vehicle. Ferrari ownership is a cult and you continue to buy to reach higher levels of access, status, etc. Those younger customers also place a heavy emphasis on customization, which can add 20-100% to the sale price at near 100% incremental margins. Revised powertrain targets for the end of the decade and what should be a better slate of classic ICE special/Icona series cars after this Luce mania set it up well to execute and exceed the end of decade targets they set out at the CMD last year, which I think was a smart move to rebound investors after explosive post COVID growth. The sell side and investors just got way too negative. I could go on for days, but I assign it a higher terminal multiple on OCF than I normally would. Really unique asset, both the company itself and the stock from the cars themselves to how centralized Ferrari runs the order book and customer access etc. capital return friendly as well. Just looking at it relative the market itself or the vast majority of large caps it won’t screen attractive on a P/E basis, especially when factoring in the growth. But there’s plenty of nuance there. Under 30x P/E and around 24-25x EV/EBITDA it was a slam dunk for me. Again, just require a different set of lens and this is a great example of the market giving you a fair price for a great business, not a great price for a fair business.
With banks I was talking more regional banks, but probably not the highest conviction example. Money centers have obviously run, but should continue to do well on the IB banking business upside from IPOs, and capital issuances. Ex-US banks are cheap, but not my cup of tea so unsure if those are “attractive”.