Great start to the week for Pirelli which stands out with a gain of 2% reaching 7,64 euros. To ensure the boost to the Bicocca company was a Goldman Sachs report published this morning in which the investment bank reaffirms its buy on Pirelli considered the best company in the tire sector with a target price of 14,32 euros, exactly double compared to today's quotation.
What is this flattering judgment due to? Pirelli, according to Goldman Sachs, has the advantage of some macro factors and correct corporate choices. To begin with, the drop in raw material prices should allow the group to save around 270 million; in parallel, the company will be able to count on higher list prices, with a similar higher profit of 270 million. Thanks to the choice to concentrate the activity in the "premium" sector with the aim of becoming the world leader for the high-end range of tires, it will allow Pirelli to increase profitability from 10 to 15-16% on a turnover that should rise from 5,5 billion in 2011 to 7,6 billion in 2015.
Based on these simes, Goldman renews its board pending the board meeting on the results of the group led by Marco Tronchetti Provera, scheduled for March 8th.
