BNP Partners has rejected widely-circulated comments advising potential Ferrari investors to avoid the company’s impending IPO. The comments, made by Max Warburton of Bernstein Research, describe Ferrari as a “low growth”, “low free cash flow”, “modest return business” whose profitability would inevitably be hampered by high technological and regulatory challenges.

The warnings come as Ferrari’s owners, FCA (Fiat Chrysler Automobiles) prepares to reveal the price at which shares in the world’s most evocative automotive brand will be offered to the public.

“Were it anyone but Ferrari, Mr Warburton’s warnings would be pertinent but, in this case, we think he’s way off the mark,” explained Gerald E. Powers, Chief Investment Officer at BNP Partners.

The warnings against participation in the IPO focused in part on several competitive and regulatory challenges facing Ferrari.

The comments cited marque’s lackluster performance in the FIA Formula 1 Championships where it didn’t win a single race in 2014’s 19-race season and imminent CO2 emission rules that could effectively restrict the sports car manufacturer to no more than 10,000 cars per annum as the most serious challenges.

Powers disagreed, saying, “Formula 1 is incredibly highly competitive and part of Ferrari’s cachet so although it only breaks even in terms of what it derives from the sport financially, all the advanced technology in its road cars can be traced back to their competitive deployment. As far as CO2 emissions are concerned, does Mr Warburton sincerely believe that Ferrari’s technological prowess will be stymied by a CO2 test?”

BNP Partners says that a growing F1 revenue pool including streams from broadcasters, sponsors and a diversification away from traditional hosting circuits in Europe to venues further afield like Singapore and Abu Dhabi would almost certainly bolster Ferrari’s take if it begins winning again.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.

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