European markets showed signs of recovery after the plans to support the Euro were approved. However, the Milan Stock Exchange is the only market to close below par value in view of the banking sector that suffered losses penalised by the negative nesflow from the Spanish market (intervention by the central bank to support the savings bank CajaSur).
Pirelli’s share price closed the week at €0.423 (-1.2%) recovering almost all losses due to the dividend distribution on May 24th, when the stock dropped to about € 40 cents.
Analysts forecasts on the stock are stable: the Consensus target price settled at € 0.52, and buy recommendation prevails on total analysts coverage (88%).
Pirelli RE also showed solid recovery (+8.2%) as the sale of the German department stores “Karstadt” will be soon concluded. Three offers were received last May 28th and, according to the German press, Highstreet consortium (Goldman Sachs, DB, Generali, Pirelli RE and Borletti) has a greater success rate.