Pirelli ended the week of November 23-27, among top securities of the Auto & Parts sector. Not only did the stock outperformed the European reference index (+3.4 percentage points), but it also outperformed the Italian blue ships index (+3.6 percentage points) ending the week at € 0.417, a 2.2% increase in a broad market sell-off in all sectors. Several brokers raised their views on the stock, based on the operating performance of Pirelli Tyre in the third quarter 2009, cutting back the holding discount on P&C in view of a greater focus of Pirelli in the core business. Recent upgrades include Morgan Stanley (Buy rating, TP €0.52), Equita (Buy rating, TP €0.51), Cheuvreux (Outperform rating, TP €0.49), UBS (buy rating, TP € 0.48) and Goldman Sachs (Neutral rating at €0.50). The average target price on Pirelli settles at €0.46; a buy recommendation prevails on the coverage made by 18 business banks.
Pirelli RE ends the week with a negative 2.7% in the Italian real estate sector, clearly in decline (Aedes -6.6%, Bastogi -8.4%, Risanamento -2.6%); Beni Stabili and IGD were the only stocks that closed the week against the market trend.