Pirelli: Morgan Stanley maintains 'overweight'

(CercleFinance.com) - Morgan Stanley is maintaining its "overweight" rating and target price of 8 euros for the Pirelli share, as the broker said it continues to like the tyre story.


In a note dedicated to the sector, the broker said that Pirelli and Michelin, in particular, saw their margins expand lately.

However, while almost all global tire stocks have risen year-to-date, their relative performance has been mixed, Morgan noted in the report.

Pirelli, in particular, has slightly underperformed its local market year-to-date, it added.

However, Morgan Stanley said it still likes the defensive nature of tyres vs. the rest of the auto market from a 12-month viewpoint.

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