Profit-taking this week for major stock markets, averaging losses of over 2% from September 28th to October 2nd; cyclic stocks were particularly hit in view of negative data on US macroeconomic performance (the PMI index – Purchasing Managers Index- of Chicago dropped in September to 46 points compared to the 50 points of the previous month).
Pirelli limits losses (-1.7% at €0.353) as opposed to the European Auto & Parts sector (-2.5%), significantly overperforming other companies from the tyre sector (Michelin -7.7%, Continental -5.2%, Nokian -5.6%). Pirelli continues to be upgraded: during this week, Banca Leonardo and Equita raised their target price on the stock to €0.45 (from €0.35) and to €0.48 (from 0.37), maintaining a “buy” rating. The upward revision in the target price reflects the upside of the pneumatic business and a lower impact on corporate costs in the NAV group (the simplification of its corporate structure announced by the Group last September 16th).
Following the announcement of Intesa San Paolo acquiring part of Pirelli RE SGR equity, the stock closed the week against the market trend (+1.2% a 0.646€) compared to the European real estate sector (-2.3%).