Uncertain week for the Milan Stock Market (-0.1%) due to threats on financial institutions in view of the implementation of the Basel 3 requirements (-1% banking Stoxx Index). Following the announcement of the UBI Bank to increase capital by Euro 1 billion to strengthen its own capital structure, the market fears that other national institutions may be forced to recapitalise. Data on inflation in the Euro zone for March also contributes to the negative sentiment (+2.6% all time high since October 2008) which confirms the expectations of an increase in short-term interests.
Pirelli ends the week mainly unchanged at €6.245.
New coverage initiated on the stock by the Swiss broker, Sarasin, with a Buy recommendation based on the premium focus strategy and the geographical position.
The consensus target price settled at € 7.52 for Pirelli, whereas a Buy recommendation prevails on coverage made by 23 analysts (77%).
Categories: Peers & Markets