MILAN, April 20 (Class Editori) -- The price of rubber keeps rising and the share price of the tire manufacturer Pirelli decreased by 0.99% to 4.908 euros on the Stock Exchange. According to a study carried out by Assogomma, a series of raw materials is recording significant rises in prices since production struggles to meet the global demand, currently fully recovering from the pandemic.
These raw materials include natural rubber (from +12% to +33% y-o-y) and components for synthetic rubber (SBR +40%, EPDM +2.5% and NBR 17%). Moreover, these price increases are combined with a rise in the cost of logistics, with increasingly expensive supplies (road transport +30%, maritime transport +150%, air transport +50%) and greater delays in the delivery of ordered quantities.
Pirelli expects to offset this negative effect against margins through price increases. “Bad news for Pirelli even though the steepening of the price curve for rubber materials has started at the beginning of the year. This, in our view, is already partially mirrored by the company’s stock on which we maintain a hold rating and a target price between 3.8 and 4.2 euros,” Bestinver Securities commented. (All rights reserved)
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