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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 worsening crisis in Libya and the consequent increase in oil prices above 111 dollars per barrel have led to a fall in international stock markets for the week of February 21-25 (Milan -3.1%, London -1.3%, Paris -2.1%, Frankfurt -3.3%).
Heavy losses have hit almost all sectors without distinction; in particular the bank sector which reflected a lost of 3.5%, industrials 2.8% whereas the Auto & Parts sector lost 3.3%. 
Pirelli ended the week at €5.8 (-3.7%) in line with the market sector; however, volumes were slightly lower than the daily average compared to the previous month. New coverage initiated on Fidentis with a TP of €7.3 and a BUY recommendation. According to the broker, the profitable target prices disclosed by Pirelli based on the Industrial Plan are achievable despite the recent rise in prices of raw materials; in 2011 Pirelli will be capable of improving its own prices in line with major business of the sector thereby guaranteeing an EBIT margin of 9%. A further potential upside driver for the stock consists of the entrance to the Russian market; option valued at €0.45 per share and is not currently included in the stock assessment.
The consensus target price settles at €7.05 with a solid Buy recommendation.
Other stocks of the European tyre sector also reflected losses: Continental -5.8%, Nokian -3.7%, Michelin -1.7%

Categories: Peers & Markets


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1 news Tuesday, March 1st, 2011