02/02/2010

PEERS & MARKETS

Pirelli was one of the best-performing Auto & Parts shares in the week 25-29 January 2010, outperforming not only the European reference index (+3.7pp), but also the Italian blue chip index (+3.8 pp), closing at €0.423: a 1% rise in a week characterised by extensive selling in all sectors.
During the week Intermonte revised its valuation of the shares (TP to €0.50 from €0.46), confirming its Outperform recommendation. According to this broker, the market is underestimating the trend of the tyre business for 2010 and 2011,  not fully appreciating the greater focus on the core business and the separation of Pirelli RE, which will take place by the end of 2010.
A poor week for Pirelli RE: the share price closed at  € 0.457 (-7.7%).