Pirelli: tyres flat as broker cuts target price
(CercleFinance.com) - Stifel reiterates its "hold" rating on Pirelli shares, having reduced its target price for them from 5.
40 euros to 5 euros, with a new sequence of EPS estimates through to 2024 that still puts it 6% below consensus.
The broker notes that, like its peers, the Italian tyre maker has tried to protect its quarterly profits from cost inflation through price increases, although that after the first five months of the year, a recovery in volumes seems more distant.
"FY22 guidance has therefore been lowered: adjusted EBIT margins are now seen at 15% (vs "16%+" previously) and FCF at the lower-end of February range (c. E0.45m)," the broker continued.
Pirelli shares are down over 2% at about 4.4 euros this lunchtime.
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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.
40 euros to 5 euros, with a new sequence of EPS estimates through to 2024 that still puts it 6% below consensus.
The broker notes that, like its peers, the Italian tyre maker has tried to protect its quarterly profits from cost inflation through price increases, although that after the first five months of the year, a recovery in volumes seems more distant.
"FY22 guidance has therefore been lowered: adjusted EBIT margins are now seen at 15% (vs "16%+" previously) and FCF at the lower-end of February range (c. E0.45m)," the broker continued.
Pirelli shares are down over 2% at about 4.4 euros this lunchtime.
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.