Berenberg Expects Pirelli to Deliver 'Continued Resilience' in Q2

01:18 AM EDT, 07/13/2026 (MT Newswires) -- Berenberg anticipates "continued resilience" in Pirelli's (PIRC.MI) second-quarter results even with "softening" volumes. "We update our estimates for Pirelli ahead of its Q2 results to reflect a decline in global tire volumes year-over-year, concentrated in the Original Equipment market. We see the high-value segment continuing to outperform, with volumes still growing by 3% versus the market at 2%. In addition, a more [favorable] currency environment turns FX from a headwind to near neutral in the quarter. Coupled with slightly stronger mix, our Q2 estimates increase marginally and full-year estimates remain roughly unchanged within the full-year guidance range," according to a July 10 note. The research firm now expects second-quarter volumes to fall by 1.5%, compared with its previous forecast of "slight positive" growth, as global tire market volumes dropped by 2%. Conversely, analysts noted that price/mix remains a positive contributor, and the Italian tire manufacturer's high-value segment should drive a 3% volume increase in the quarter despite a broader reduction in the company's exposure to standard tires. Berenberg also viewed reports of a potential stake sale by Sinochem to Czech investors as a positive catalyst signaling a "genuine willingness" from the Chinese state-owned conglomerate to sell part of its 34.1% interest, which could attract more long-only investment. "We do not expect this overhang to persist for much longer, given that Sinochem's loss of control within Pirelli limits the strategic benefit of retaining such a large stake," the note said. Ahead of the company's first-half earnings due on July 29, the stock remains rated at buy, with an unchanged price target of 7.60 euros.