Pirelli ends the week June 14-18 at € 0.483 (+2.2%) after reaching a high of € 0.50, corresponding to the price on September 2008 before the collapse in the stock market. Pirelli remains the among the best performing stocks of the FTSE Mib (+15%) since the beginning of the year.
HSBC initiated coverage on Pirelli with an Overweight recommendation and target price of €0.55. According to HSBC, Pirelli is among favourite stock picks of the European tyre sector due to its product positioning and its strong presence in Latin America.
In view of the plan for separation of Pirelli RE, Intermonte raised the target price on Pirelli to €0.53 (from €0.52). The holding discount (12%) cancellation is more than enough to offset the cancellation of the shareholding in Pirelli RE from NAV of Pirelli & C. A neutral recommendation prevails in view of the recent stock rally.
Consensus forecasts on the stock are stable: TP €0.52 with a prevailing Buy recommendation (83%) on coverage by 21 business banks.
Strong rebound by Pirelli RE of +4.7% to €0.387 whereas major Italian real estate competitors show a mixed trend (Risanamento -3.9%, Beni Stabili +3.6%).