Pirelli: Oddo cuts target price
(CercleFinance.com) - Oddo says that yesterday evening Pirelli posted earnings Q2 2019 results that are in line with the recently reduced consensus, which, as expected, were marked by a further (significant) fall in volumes (-3.
5%), albeit offset by a price-mix effect that remains high (+5.1%), albeit down sequentially, notably due to a more difficult pricing environment.
Following this publication, Oddo confirms its buy rating on the share, although has trimmed its target price to 6.50 euros (against 7 euros).
Pirelli has reduced its 2019 sales growth forecast from 3%-4% to 1.5%-2.5%, citing continued weakness in OE demand and competition.
Oddo believes that the downward revision of the guidance was expected and that the consensus should remain pretty much unchanged.
The broker has reduced its adjusted EBIT estimates by about 3% so as to incorporate a more conservative volume/price scenario, itself expecting the bottom of the range.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5%), albeit offset by a price-mix effect that remains high (+5.1%), albeit down sequentially, notably due to a more difficult pricing environment.
Following this publication, Oddo confirms its buy rating on the share, although has trimmed its target price to 6.50 euros (against 7 euros).
Pirelli has reduced its 2019 sales growth forecast from 3%-4% to 1.5%-2.5%, citing continued weakness in OE demand and competition.
Oddo believes that the downward revision of the guidance was expected and that the consensus should remain pretty much unchanged.
The broker has reduced its adjusted EBIT estimates by about 3% so as to incorporate a more conservative volume/price scenario, itself expecting the bottom of the range.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.