Pirelli: Mediobanca Confirms Underperform After Disappointing Q3 Data

Pirelli -5.6% to 4.0390 euros: Mediobanca confirms the underperform opinion and the target of 3.70 on the stock. The group closed the third quarter of 2020 with results down compared to the same period of 2019 but in some cases better than analysts’ expectations. Revenues amounted to € 1,277.4 million, with an organic change of -1.5% y / y (consensus 1230); adjusted EBIT of 213.7 million euros (244.5 in Q3 2019, consensus 206); the total net result of +83.9 million euros (+ 6.6% yoy, consensus 68).

The group has revised the 2020 guidance, and here too we find lights and (above all) shadows: revenues are expected between about 4.18 and about 4.23 billion euros (from 4.15-4.25 billion the previous target) , with volumes slightly improving to about -17% / – 18% (about -18% / – 20% the previous indication) and price / mix slightly worsening to about + 1.5% (about + 2% the previous target ).
The estimate on the adjusted EBIT margin also worsened, now expected to be between about 11.5% and 12% (the previous indication between about 12% and 13%). Overall, the 2020 market outlook improves thanks to Original Equipment in Apac and North America, while the scenario is more uncertain in Europe due to the recent anti-Covid-19 measures.

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