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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.

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PEERS & MARKETS

The week 31 January to 4 February was a positive one for the principal international markets (Milan +2.7 %, London +2.0%, Paris +1.6%, Frankfurt +1.1%).
At sector level, only industrial shares (European reference index –0.6%) and Auto shares (-2.2%) were hit by sales , while the raw materials sector continued to be buoyant (+5.9%), favourably  influenced by the further rise in commodities prices and the weekness of the dollar. Bank shares also rose (+2.4%) despite the ECB decision to retain the reference interest rate at 1% (set in May 2009).
Tyre shares performed better than the sector as a whole, with Pirelli closing the week at €5.64 (+0.5%, +2.7pp vs Stoxx Auto); with an average trading volume of approximately 3 million per day. Deutsche Bank issued an update confirming its Target Price of €7.6 for Pirelli, reiterating its BUY opinion.   Positive results are expected for the 4th quarter of 2010, which will be published on 8 March 2011: Pirelli will be among the main players to compensate for the impact of raw material prices on EBIT, with its improved price-mix.
Continental and Michelin also rose, by 0.5% and +4% respectively.
The consensus target price for Pirelli was €7.0, and the recommendation is primarily Buy (63% of analysts’ coverage).


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1 news Monday, February 7th, 2011