Analysts ‘concerned’ about reduced Pirelli outlook
Financial analysts have stated their concern that tyre manufacturer Pirelli reduced its performance projections in several key areas when publishing its 9-month results recently. However, at the same time Morgan Stanley market watchers in particular reassured investors that the reductions were unlikely to results in any “material downgrades” but did warn that the stock could be impacted by the lowered premium volume guidance.
Nevertheless the impact of the reductions was expected to produce a “sombre effect” when it came to initial share price reaction. But this doesn’t appeared to have swayed opinion unduly: “We remain fundamentally positive on the name for 2013 and consensus for EBIT at 920 million looks low (MSe 1bn).”