Pirelli & C

S&P Global Ratings has raised Pirelli’s long-term issuer rating and its rating on unsecured bonds from BBB- to BBB with a stable outlook. The move reflects a significant decline in adjusted debt from €2.7bn at end-2024 to about €2.0bn at end-2025 and robust profitability. S&P expects an FFO-to-debt ratio of 50–55% for 2026–2027, adjusted EBITDA margins of 21–22% and annual free operating cash flow of €625–725m. Revenue is forecast to fall 0–1% in 2026; a downgrade could be considered if FFO-to-debt persistently falls below 40% or FOCF-to-debt below 20%. » Plus sur de.investing.com

JPMorgan cut its rating for Pirelli from “Overweight” to “Neutral”, citing limited upside at the current price target despite the company reporting solid half-year results. Revenue in Q2 was €1,757.3 million with organic growth of 1.4%, adjusted EBIT rose to €280.4 million and the EBIT margin remained at 16%. JPMorgan notes a positive price/mix effect of 2.9% but reports a negative net cash flow before dividends and the consolidation of the call option on Xushen Tyre of -€556.9 million in the first half. The bank expects Pirelli to execute its industrial strategy and protect cash flow and the balance sheet mid-term, but currently sees no attractive further upside in the share price. » Plus sur de.investing.com

Pirelli shares fell more than 3% after Citi downgraded its rating from "Buy" to "Neutral" and raised the price target from €7.40 to €7.50. Citi cites a 17% year‑to‑date rally and says the quarterly results are largely priced in; its own EBIT estimates are close to consensus. The firm highlights that Pirelli remains well positioned in the premium segment but prefers Michelin and Continental for the second half of the year. Talks of a partial sale of Sinochem's stake are mentioned but remain unconfirmed. » Plus sur de.investing.com