Dan Loeb’s Third Point is Selling These 5 Stocks

3. Ferrari N.V. (NYSE:RACE)

Number of Hedge Fund Holders: 27

Ferrari N.V. (NYSE:RACE) ranks third on the list of 10 stocks Dan Loeb’s Third Point is selling. The company designs, manufactures and markets high-end sports vehicles.

Exane BNP Paribas analyst Giulio Pescatore downgraded the stock to “Neutral” from “Outperform” and gave a price target of $256. Pescatore predicts 2021 will be the “slowest first year of cyclical recovery in recent history,” lowering his volume forecasts for 2021-2023 to 10 million units by 4%.

Ensemble Capital, an investment management firm, in its second-quarter 2021 investor letter mentioned Ferrari N.V. (NYSE:RACE). Here is what the fund said:

“Ferrari: After posting standout performance in 2020, beating the S&P 500 by over 20%, Ferrari’s share price performance has lagged for much of this year. The main issue this quarter was the company pushing out their medium-term financial targets due to development and production delays caused by COVID, but this only led to a 1% decline in the stock price for the full quarter. While we believe the company did a fantastic job maintaining production in light of COVID, it did not surprise us that some of their longer-term, new model introductions might be delayed by a couple of quarters. While disappointing of course, Ferrari is curating a set of extremely exclusive mechanical works of art and we are much happier seeing them take the time to do things right, rather than rushing to meet a self-imposed financial target.”