(Bloomberg) -- Brembo SpA, which supplies brakes for Ferrari NV's Formula 1 race cars, is headed for its best weekly performance in two years as investors cheered 2017 results and a confident outlook.
The shares are up 16 percent this week, the most since March 2016. The stock has underperformed recently on concern about the negative impact from currency and possible weakness in the U.S. car market.
Brembo said on Monday that 2017 revenue rose 8.1 percent to 2.46 billion euros ($3.05 billion), with earnings before interest, tax, depreciation and amortization advancing at about the same pace to 480 million euros. The company sees a “very negligible” impact from possible import duties in the U.S., Chief Executive Officer Andrea Abbati Marescotti said on a conference call.
Management is “unusually bullish” on 2018, forecasting “high-single-digit” revenue growth, Mediobanca SpA analyst Niccolo Storer wrote on March 6. The stock has been “unjustly penalized” on fears about slowing growth and currency headwinds, Storer added, reiterating his outperform rating.
Banca Akros analyst Gabriele Gambarova upgraded the stock to accumulate from neutral on the same day, citing good results and a “promising” outlook. Management showed “a certain confidence even when dealing with the threatened U.S. duties on EU imported cars,” he said.
--With assistance from Blaise Robinson
To contact the reporter on this story: Chiara Remondini in Milan at cremondini@bloomberg.net.
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Brian Lysaght, Angela Cullen
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