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The latest update on Pirelli & C. centers on a fine tuned move in fair value, with the price target edging from €7.04 to €7.09. That shift sits against a backdrop of mixed analyst calls: one firm has lifted its target by €0.20, while another has cut by €0.40, reflecting very different views on how the story stacks up today. As you read on, you will see how to interpret these moves and keep track of how the narrative around Pirelli keeps evolving.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Berenberg initiated coverage of Pirelli with a Buy rating and a €8 price target, pointing to a preference for tire suppliers that keep things simple and focus on cash returns.
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The same Berenberg view highlights Pirelli's tilt toward high value tire exposure over standard products, which the firm sees as an advantage within the sector.
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Citi's decision to lift its Pirelli price target by €0.20 suggests the bank sees room for the shares to better reflect its assessment of the company's positioning.
🐻 Bearish Takeaways
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Berenberg later cut its Pirelli price target by €0.40. This flags some caution on how much upside the firm currently assigns to the shares, even while maintaining earlier interest in the name.
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The recent target trim from Berenberg, set against Citi's smaller upward move, underlines that execution and future cash generation are viewed differently across the Street. This leaves a wide spread in valuation opinions.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 2 risks for Pirelli & C. See which could impact your investment.
What's in the News
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Pirelli announced an annual dividend of €0.2400 per share, with payment scheduled for June 25, 2026.
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The dividend carries an ex dividend date of June 23, 2026 and a record date of June 24, 2026, setting the key timeline for eligible shareholders.
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The board plans to meet on February 25, 2026 to review and approve preliminary results for fiscal year 2025.
How This Changes the Fair Value For Pirelli & C
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Fair value updated from €7.04 to €7.09.
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Modeled revenue growth adjusted from 2.18% to 2.11%.
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Net profit margin refined from 7.94% to 7.96%.
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Future P/E multiple moved from 23.0x to 23.2x.
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Discount rate revised from 12.16% to 12.22%.
Never Miss an Update: Follow The Narrative
Narratives connect Pirelli & C's business story to the earnings forecasts and fair value estimates analysts are using. They refresh as new research, guidance, and risks come through, so you can see how the thesis is evolving over time.
Head over to the Simply Wall St Community and follow the Narrative on Pirelli & C to stay up to date on:
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How the focus on premium, EV compatible, and smart tire technologies, including Cyber Tyre, ties into potential new revenue streams and margin support.
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The role of sustainability efforts, such as higher bio based content and decarbonization targets, alongside efficiency projects like automation and factory of the future programs.
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Key risks around tariffs on tire imports, currency swings, reliance on the premium High Value segment, rising raw material costs, and limits on production flexibility in certain regions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PIRC.MI .
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