Pirelli: Invest Securities still a buyer, reduces TP
(CercleFinance.com) - Invest Securities reinstates its "buy" rating on Pirelli shares, while reducing its target price for them from 6.
5 euros to 5.9 euros (current price: 4.5 euros, +0.7%), after a quarterly publication that was clearly above expectations with a price-mix effect that guarantees the resilience of the group's EBITA margin.
The broker points out that its new target price represents upside potential of 32%, as the Italian tyre maker's stock has fallen back below 4.5 euros since its peak of 6.7 euros on 13 January.
As a premium player, Pirelli remains too heavily undervalued within the tyre sector. In the current environment, visibility and resilience are preserved although not valued, the analyst said.
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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 euros to 5.9 euros (current price: 4.5 euros, +0.7%), after a quarterly publication that was clearly above expectations with a price-mix effect that guarantees the resilience of the group's EBITA margin.
The broker points out that its new target price represents upside potential of 32%, as the Italian tyre maker's stock has fallen back below 4.5 euros since its peak of 6.7 euros on 13 January.
As a premium player, Pirelli remains too heavily undervalued within the tyre sector. In the current environment, visibility and resilience are preserved although not valued, the analyst said.
Copyright (c) 2022 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.