Pirelli: UBS no longer a buyer; shares drop

(CercleFinance.com) - Shares in Italian tyremaker Pirelli fell sharply on Thursday after UBS downgraded the stock and cut its target price.


UBS said that it is cutting its rating on the share from "buy" to "neutral" and has lowered its target price from 8.5 euros to 7.6 euros.

"We turn more cautious on the near term price-mix outlook and the ability to deliver on the full-year guidance," UBS analysts said in a note.

In mid-morning trading, Pirelli shares were trading down 4.7% at 6.7 euros, significantly underperforming a slightly weaker FTSE MIB index.

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