(CercleFinance.com) -Stifel maintains its 'hold' rating on Pirelli, with an unchanged target price of 5.9 euros.

The analyst reports that Pirelli's adjusted EBIT for 1Q24 was 2% above consensus expectations, with a reinforced margin of 15.5% (+90ps year-on-year).

FCF was also +2% above expectations.

Against this backdrop, the Group unsurprisingly reiterated its sales target of E6.7 bn in 2024, with a margin of 15.3%.

Stifel believes that the stock should react positively to these announcements. For the broker, cost inflation in 2024 (around -140 ME
mainly labor/logistics) should be entirely offset by internal efficiency gains.

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