Among the big names on Piazza Affari that have yet to publish their 2023 results is Pirelli, which will approve the results on March 6. In the same daythe company will also hold Capital Market Day, featuring the update of the Industrial Plan to 2025. Here are the experts’ projections on Pirelli’s accounts for the fourth quarter and full year 2023.
If you want updates on Italian Budget Data enter your email in the box below:
By filling out this form I agree to receive information relating to the services on this page in accordance with the privacy policy.
The forecasts for Pirelli’s 4Q accounts
Analyst estimates, collected by Bloomberg, indicate revenues of 1.47 billion euros in the fourth quarter, down 7% every year. Ebitda is expected to decline by 7% to 306 million and Ebit to decrease by 6% to 212 million. Net profit should show a worsening of 9% to approximately 89 millionwith an adjusted figure down 59% to 85 million.
At a product level, the High Value segment is expected to contribute to revenue with 610 million (-18%) and the Standard segment with 851 million (+14%).
In geographical terms, the main market should remain Europe and Turkey (577 million), followed by North America (437 million), Asia-Pacific (394 million), Russia, the Nordic countries, the Middle East, Africa and India (257 million) and South America (182 million).
Estimates for FY 2023
The forecasts for the full year, compiled by a greater number of brokers and therefore theoretically more reliable, indicate revenues of 6.63 billion, substantially unchanged every year.
Ebitda is expected to remain stable at 1.41 billion and Ebit to increase by 2% to 999 million, while net profit is expected to increase by 9% to 547 million (adjusted net profit -4% to 547 million).
Expected sales of the High Value segment are on average equal to 5.06 billion (+4%) and Standard sales to 1.56 billion (-7%).
The expected geographical distribution sees Europe and Turkey in the lead (2.55 billion), followed by North America (1.76 billion), Asia-Pacific (1.22 billion), Russia, the Nordic countries, the Middle East, Africa and India (598 million ) and South America (875 million).
Focus on Michelin’s accounts in Paris
The results were released this week Michelin, a tire manufacturer like Pirelli, listed in Paris. The title closed Tuesday’s session up 6.9%thanks above all to solid margins in the second half, dividend increase to 1.35 euros (+8%) and more buyback up to 1 billion euros in the period 2024-2026.
However, the transalpine company provided prudent guidance (“more conservative than constructive”, according to Citigroup) due to challenging market conditions. Morgan Stanley believes there is room for upward revisions in 2024, a year in which volume growth is still expected.
Intermonte underlined how the adjusted Ebit, stable on an annual basis and above expectations, benefited largely from the Passenger Car/Light Truck Iires segment (15% margin against the 12.6% expected), “the most relevant division purposes of a read-across for Pirelli”.
The analysts’ view on Pirelli
The overview of opinions on Pirelli, according to data collected by Bloomberg, sees a clear prevalence of positive recommendations, with 14 Buy, 5 Hold e 0 Sell. Il average target price is 5.67 euroscompared to the current stock market price in the 5.4 euro area.
For Intesa, Pirelli’s 2023 financial year results should support confidence in free cash flow generation of the group, expected at the high end of the guidance.
“In a current context characterized by problems with transport costs and cyclical oscillations in the truck tire and specialty sectors, we continue to prefer Pirelli among the European producers, characterized by greater resilience and a still undemanding evaluation both on the DCF than on the current P/E 24/25E compared to historical levels (10.7x)”.
The experts confirmed the Buy rating and raised the target price from 5.8 to 6.2 euros.