In a report released today, Harry Martin from Bernstein maintained a Sell rating on Pirelli & C. SpA (2PI – Research Report), with a price target of €4.60.
Harry Martin has given his Sell rating due to a combination of factors affecting Pirelli & C. SpA. Despite the company’s strong market position and execution, the potential for upside is limited as these factors are already reflected in the current valuation. The primary concern is the risk of US tariffs, which could impact earnings, and while Pirelli has strategies to mitigate this, the effectiveness of these measures is uncertain.
Furthermore, governance issues and the possibility of consumers opting for lower-tier products add to the risks. Pirelli’s reliance on imports for the US market is another concern, and while increasing local production could be a solution, it would require significant investment and carries its own risks. Consequently, Martin suggests that the stock is overvalued compared to competitors like Michelin, which offers similar quality with local production advantages at a lower price.
According to TipRanks, Martin is ranked #5784 out of 9390 analysts.