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Ferrari, not Tesla, might be the stock to buy

Last week Tesla's earnings – or lack thereof – were one of the big stories in the auto industry. As usual, the electric carmaker didn't make money, but the news sent the market, analysts, and Tesla's devoted fans into a lather. But another company, this plucky upstart called Ferrari, also attracted a positive reaction from the market and actually had the financials to back it up. Ferrari posted net revenues of $898 million (at today's exchange rates) EBITDA of $265 million (a slightly complicated way to snapshot financial performance) and an adjusted net profit of $136 million in the first quarter. The company delivered 2,003 cars, and sales of its V12 models increased 50 percent. It quietly made progress nearly a year and a half into its life as an independent automaker. For 2017, Ferrari expects to deliver 8,400 cars and rake in net revenue of $3.6 billion. No one thought Ferrari would flounder when Fiat Chrysler Automobiles spun it off in fall 2015. With a rich history, expensive products, and its own loyal fan base that's arguably even larger than Tesla's, the company seemed poised for success, though skeptics wondered how it might fare after longtime chief Luca di Montezemolo stepped down before the spinoff. Plus, the company remains within the FCA sphere, as its key stakeholders are largely connected to its former parent in some way, and Chairman Sergio Marchionne also steers FCA. Last week's results showed Ferrari is gaining footing in the evolving automotive world, and analysts responded. UBS analyst Michael Binetti reiterated Ferrari stock (RACE on the NYSE) as buy status and raised his target price from $85 to $92. Morgan Stanley's Adam Jonas was even more bullish, raising projections to $100 in the next 12 months. Shares were trading around $82 Monday morning. Both analysts viewed Ferrari as something different than a conventional automaker stock, with Binetti comparing it to luxury house Hermes, which produces high margins even for a specialty goods maker. Jonas suggested Ferrari's singular reputation and history (16 Formula One Constructors titles, the most ever) could insulate its products when autonomous and electric cars become even more commonplace. "In our view, a Ferrari is not transportation," he wrote in a note to clients. "Ownership is viewed as an exclusive club, and membership requires more than just money.

Ex-Ferrari chairman sounds off on IPO

Former Ferrari chairman Luca di Montezemolo preferred to put exclusivity over profits when he ran the company, and the lower volume still meant huge amounts of cash for the business. FCA CEO Sergio Marchionne has since taken over Ferrari, but that hasn't stopped di Montezemolo from voicing his opinions. "I hope that the clients will remain more important than the analyst or the investor or the financial markets," di Montezemolo said prior to his induction into the Automotive Hall of Fame in Detroit, the Detroit Free Press reported. The former chairman argued that once on the stock exchange, a company would need to maximize profits quarter after quarter to keep investors happy. Conversely, di Montezemolo said Ferrari's years of success came from an "exclusivity in terms of number of cars, exclusivity in terms of how you deal with the clients." When di Montezemolo left Ferrari last year, he and Marchionne were scuffling about the future of the brand, including the health of the Formula 1 program. With the change in leadership, the company has reversed course in some ways. Where volume was previously kept around 7,000 units annually, the carmaker has set a new goal of closer to 10,000. The paperwork was filed for the IPO, and Marchionne thinks the company could be worth over $11 billion. The actual shares are rumored to go on sale in October. Related Video:

New Ferrari 488 variant spied at the 'Ring

Most Ferrari models eventually give birth to various special-edition or short-run variants. The Ferrari F12berlinetta gave way to the F12tdf. The Ferrari 458 Italia signed off with the wonderful 458 Speciale. It looks like the Italian automaker's current mid-engine V8 offering, the 488 GTB, is ready to spawn a variant of its own. Exactly what the model might be remains to be seen. There are plenty of rumors surrounding the car. This could be a focused, track-ready version in the vein of the 458 Speciale. If that's the case, look for more power, less weight, and improved aero. The car should pack bigger brakes, a stiffer suspension, revised tuning, and a bare-bones interior. There are also rumors that the car will pack a KERS system similar to the one run on Ferrari's Formula 1 cars. That should provide an extra bit of electrical boost. A car like this is almost a given. The past few mid-engined Ferraris have all had a high-performance variant. Then again, this car could also be the lower-powered, less-expensive Ferrari Dino that's been whispered about for a while. If that's the case, look for a lower horsepower V8 (or even a V6, if Ferrari would be so bold). It would likely stack up against the McLaren 570S and Lamborghini Huracan 580-2. This may come as a shock to some, but Ferrari has made no bones about expanding production. A relatively low-cost model could easily boost sales. The car in these photos gives no real indication as to what it may be. There's thin plastic camouflage covering most of the car. As always, it's difficult to tell what may have changed, but it looks like there have been revisions to the front bumper. The glass over the engine cover has been draped with a thin sheet of plastic, hiding what rests beneath. Ferrari has been mum on the model, but this isn't the first time we've seen the car out. Look for more news this fall. Related Video: Featured Gallery Ferrari 488 spy shots View 14 Photos Image Credit: Car Pix Spy Photos Ferrari Coupe Performance Supercars ferrari dino ferrari 488 ferrari 488 challenge