Pirelli is down 3% in Milan, following the publication of a net profit for 2023 up 13.8% to 495.9 million euros, with an adjusted EBIT margin of 15.1% on revenues of 6.65 billion, in line with its annual targets.

Although Oddo BHF deems this publication solid and slightly raises its estimates (+2% on 2024 EPS), it maintains its 'neutral' opinion on the Italian tire maker's stock, which it still prefers to its peer Michelin.

The research firm justifies its position 'in view of both a valuation level that is now less attractive after the share's good performance, and the uncertainties still weighing on governance and shareholding'.

We consider the outlook for 2024 and 2025 to be cautious, and to point to some positive surprises", says UBS, which also believes that deleveraging is on the right track, and maintains a "buy" rating on the stock.

Copyright (c) 2024 CercleFinance.com. All rights reserved.