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Pirelli & C. S.p.A.

0P1R.LSEEUR
6.62+16.8%1Y · EUR

Pirelli & C. S.p.A. manufactures and sells tires for cars, motorcycles, and bicycles through its subsidiaries, operating across Europe, North America, the Asia-Pacific, South America, Russia, India, the Middle East, and Africa. Its car tire brands include P ZERO, Cinturato, Scorpion, Carrier, Winter Sottozero, and Ice, while its motorcycle tire brands include Pirelli Diablo and Metzeler lines. The company also offers bicycle tires, Run Flat and Seal Inside technologies, the Pirelli Noise Cancelling System (PNCS), and Elect tires for electric vehicles, along with customer services such as car valets and courtesy cars. Founded in 1872 and headquartered in Milan, Italy, Pirelli sells through its stores to vehicle manufacturers, retailers, specialized distributors, and car dealers.

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Bernstein upgrades Continental to outperform, sets €82 target

Bernstein upgraded tyre maker Continental AG to "outperform" from "Market-Perform" and raised its price target to €82 from €74, calling it its "top pick" in the tyre industry and citing a valuation discount to rivals after planned asset sales. After those deals, Continental trades on 7.3 times enterprise value to operating profit, against 7.4 for Pirelli and 8.0 for Michelin, Bernstein said. Bloomberg data shows Continental at a 10% premium to Michelin, but Bernstein's own calculation, which includes the €250 million MyCar disposal in Australia, shows a discount of about 10%, and the broker expects the gap to close within six months. Bernstein said part of the upside comes from the €4 billion sale of ContiTech to Lone StarFunds, aimed to close by the end of 2026, arguing the market does not fully understand how the sale price translates into the €3.1 billion in cash proceeds the company has guided to. Of that €3.1 billion, Continental will return €2.5 billion to shareholders in 2027, which combined with the ordinary dividend is a cash return yield of about 20%, compared with about 7% for peers. Bernstein forecasts a tyre adjusted EBIT margin of 14.4% for the third quarter against a consensus of 13.5%, and is 4% ahead of consensus for the second half of 2026 and for full-year 2027.
CON.XETRA · Capital · Positive Bernstein upgraded Continental to outperform and raised its price target to €82, calling it top pick on a valuation discount.
0P1R.LSE · Competition · Neutral Named only as a valuation comparison (7.4x EV/EBIT) against Continental; no company-specific development.
ML.PA · Competition · Neutral Mentioned only as a valuation benchmark (8.0x EV/EBIT, 10% premium) versus Continental; no own news.
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Robotics & Physical AI▲

Pirelli Approves €1bn Expansion of Georgia Tyre Plant

Pirelli's board of directors has approved a multi-year investment plan worth approximately €1bn, or $1.14bn, to expand its tyre manufacturing facility in Rome, Georgia, in the US. The plan passed by majority vote, though three Sinochem-nominated board members, Zhang Haitao, Xi Xiaohong and Wang Kun, voted against it. Implementation will begin in phases from 2027, lifting the plant's annual output capacity to around six million car tyres by 2033, with work unfolding across two stages: an initial phase ramping up robotised manufacturing using the newest version of Pirelli's proprietary modular integrated robotised system, followed by a fully automated conventional facility for premium products that will contribute another three million tyres in annual capacity once fully operational. The upgrade will incorporate Cyber Tyre technology and is projected to generate roughly 1,000 new jobs, and Pirelli said it has secured clearance from the US Bureau of Industry and Security to sell its Cyber Tyre system within the US market following governance changes introduced under Italy's Golden Power Decree. Pirelli said the plan will leave its 2026 targets unaffected, with the capex-to-revenue ratio for 2027-2033 expected to stay broadly consistent with prior periods while maintaining the group's cash generation; the company has operated in Georgia since 2002. In July, Chinese state-owned Sinochem sold a 14% stake in Pirelli to Lumina Crown, an investment vehicle controlled by Czech businessman Michal Strnad, cutting its holding from 34.1% to 20.1%.
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0P1R.LSE · Capital · Positive Pirelli's board approved a ~€1bn multi-year investment to expand its Georgia tyre plant, lifting capacity to ~6 million tyres by 2033.
0P1R.LSE · Regulation · Positive Pirelli secured US Bureau of Industry and Security clearance to sell its Cyber Tyre system in the US market.
600500.CG · Capital · Negative Sinochem-nominated board members voted against the €1bn Georgia expansion, and Sinochem has been cutting its Pirelli stake.
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