Despite the pull back in Pirelli (-2% at € 0.42) as profit taking sets in for the week of December 14-18 2009, the stock stands among best performers in the European tyre sector, going up +59.7% since the beginning of the year, compared to +42% for Michelin and +29.5% for Continental.
Unicredit raised the target price on Pirelli & C from €.025 to €0.45 confirming a “Hold” recommendation. This upgrade is due to the cutback on the holding discount (from 40% to 15%) and the improvement on the evaluation of Pirelli Tyre, using the same multiples as its European peers.
The average target price on Pirelli settles at €0.48; a “BUY” recommendation prevails on coverage made by 18 stock analysts.
Pirelli RE ends the with a -5.2% decline, in line with the Italian Real Estate sector (Gabetti -7.7%, Risanamento -5.1%, Bastogi -3%)