Pirelli: stock down after H1 loss
(CercleFinance.com) - The Pirelli share is down by around 3% in Milan, the day after the tyre maker published a H1 2020 net loss of 110.
7 million euros, against a profit of 307 million a year ago, for revenues that are down 31.6% at 1.82 billion euros.
These results reflect shutdowns and the market downturn, along with effects from the group's cost-cutting plan on the remarkable stabilisation of free cash flow, notes Invest Securities, which maintains a "buy" rating on the share, raising its target price to 4.5 euros (27% upside).
The 2020 guideline have been lowered on three points: sales, FX and raw materials, which will hit 2020 EBITA by at least -50 million euros, the analyst adds, however, reducing EPS estimates for 2020-22 by -16%/-15%/-12% respectively.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
7 million euros, against a profit of 307 million a year ago, for revenues that are down 31.6% at 1.82 billion euros.
These results reflect shutdowns and the market downturn, along with effects from the group's cost-cutting plan on the remarkable stabilisation of free cash flow, notes Invest Securities, which maintains a "buy" rating on the share, raising its target price to 4.5 euros (27% upside).
The 2020 guideline have been lowered on three points: sales, FX and raw materials, which will hit 2020 EBITA by at least -50 million euros, the analyst adds, however, reducing EPS estimates for 2020-22 by -16%/-15%/-12% respectively.
Copyright (c) 2020 CercleFinance.com. All rights reserved.