Berenberg Expects Pirelli to Deliver 'Continued Resilience' in Q2

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.