Pirelli: Invest Securities raises target price

(CercleFinance.com) - Invest Securities has reinstated its "buy" rating on the share of Italian tyre maker Pirelli, increasing its target price from 3.
8 euros to 4 euros (vs. current share price 3.64 euros), after quarters that have seen an acceleration in the group's flexibility plan that will generate cost savings of 160 million to 280 million euros in 2020.

However, the broker has reduced its 2020 earnings estimates towards the lower end of the guidance range and is moderating its expectations that there will be a rebound in 2021/22. However, above all analysts retain the positive impacct on free cash flow that should result from cost adjustments.


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