Pirelli: Oddo BHF downgrades stock

(CercleFinance.com) - Oddo BHF has downgraded Pirelli shares from "outperform" to "neutral", reducing its target price for them from E5.
5 to E4.5, after incorporating a governance discount on press rumours suggesting the probable departure of Giorgio Bruno, who was due to become CEO.

Analysts believe it will be difficult for the stock to regain favour with investors in the near term until they have better visibility on the tyremaker's governance and shareholder structure.

While acknowledging that governance has been further weakened, which is not without consequences for Pirelli, the broker points out that it still considers operating results to be solid, generally in line with the Italian group's guidance and consensus.



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