Pirelli: shares up after UBS starts coverage with 'buy'

(CercleFinance.com) - Shares in Pirelli were up 0.
8% at 7.6 euros on Friday, slightly outperforming the Italian market, after UBS began its coverage of the tyre maker with a "buy" rating and target price of 8.5 euros.

In a research report, the broker writes that the group's focus on "high value" tyres (prestige, and speciality) should bear fruit.

Also, UBS thinks Pirelli has better control over pricing than peers.

Based on these assumptions, Pirelli's net operating cash flow could triple by 2020, with its earnings up 4-fold, the broker says.

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