AlphaValue/Baader Europe Trims Pirelli Price Target on Equity-linked Bond Conversion Dilution

01:25 AM EST, 01/08/2026 (MT Newswires) -- AlphaValue/Baader Europe revised its price target for Pirelli (PIRC.MI) to account for the dilutive impact of the Italian tire manufacturer's equity-linked bond conversion in December 2025. As such, the research firm on Wednesday reduced the add-rated stock's price target by 7.1% to 6.92 euros. Analysts also trimmed EPS forecasts for full-year 2025 and 2026 by 4.07% and 7.82% to 0.47 euro and 0.48 euro, respectively. "While the underlying business fundamentals remain unchanged, the higher share count dilutes per-share value, explaining the observed drop in our target price," the note said. "We remain positive on Pirelli's equity story, supported by its value-focused strategy insulating the group from Asian competition, disciplined reduction in standard tyre exposure, technological expertise, strong brand (reinforced by F1 partnerships), ongoing deleveraging, and robust free cash flow generation." AlphaValue/Baader Europe noted that ongoing governance uncertainties may serve as a headwind for North American expansion, though it expects the issue to be resolved during the first half.