Pirelli: Invest Securities initiates coverage with 'buy'

(CercleFinance.com) - Parisian broker Invest Securities this morning began to monitor the Pirelli share, initially adopting a buy rating.


The broker has set a target price at 8.6 euros, which suggests upside potential of 20%.

According to analysts, the "premium" status of the Italian tyre maker, which was reintroduced onto the Milan Stock Exchange by its Chinese shareholder CNRC at the end of last year, is "poorly valued". The "new" Pirelli is indeed more present than the former one on the segment of "upscale" tyres.

The publication of 2017 and Q1 2018 results confirmed Pirelli's renewed potential. Its 2018/2020 estimates show a record sales growth of around 10% in the sector, with an increasing operating leverage (EBITDA/Sales) of 2.5 points by 2020, its research points out.



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