Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.

Share to Facebook Share to Linkedin Share to Twitter More...


International stock markets ended the week September 27th – October 1st negatively (Milan -1.1%, London -0.1%, Frankfurt -1.4% and Paris -2.4%). Ongoing conflicting macroeconomic data, expected decisions by Ecofin on the debt of non-core countries from the Euro zone and fear on Irish and Portuguese bonds have raise doubts on purchase prices and encouraged profit-taking.
The Oil&Gas sector and the Technology sector have shown good performance of +1.6% and +0.33%, respectively; which are the only sectors that ended positively.
Pirelli showed a positive trend for most part of the week, exceeding the share price of 6 euros (€6.06 reported last September 30), thereby reflecting the increase on US prices (up to 7% on the entire range) and reflecting the positive opinion from stock analysts during the Paris Motor Show on Pirelli’s strategic position vs. its peers. However, end-of-the-week profit-taking (-2.6% European Reference Index) lead to drop in Pirelli stock to € 5.96 (-0.4%). Volumes settled at an average of 5 million pieces (higher compared to the last three months).
The Consensus target price for Pirelli settles at €6.35 (a buy recommendation prevails on coverage by analysts: 79%).
Michelin drops in view of the unexpected announcement on the share capital increase of  €1.2 billion, ending the week with a 14.8% decline. The stock also suffered downgrades by Merrill Lynch and Morgan Stanley.
However, the market reacted different to the announcement of Continental (+0.9%) to issue an additional bond of €1.25 billion (in 2 tranches with maturity on 2016 and 2018 and coupons of 6.5% and 7.125%, respectively). Nokian also ended the week positively (+1.3%).
Rebound by Pirelli RE of 1.1% to €0.44.

Write a comment »