The week 13 to 17 June was characterised by ups and downs on the main international markets (Milan -0.1%, London -0.9%, Frankfurt +1.3%, Paris +0.5%) with market focused on Greek debt.
Pirelli, in counter-trend with respect to the main peers and Piazza Affari (Milan Stock Echange -0.1%) closed at 6.76€, a rise of 1.5% with an average trading volume of 3 million per day.
During the week (14 June) Intermonte brought Target Price to 10€ per share (8.5€ the previous TP), the highest value ever assigned until now: the focus on premium, the price policy and a geographical positioning more open towards emerging markets – in particular in the Truck sector – will allow Pirelli to reach a profitability in line with Continental’s (with a forecast of 14% for Ebit margin in 2015). Similar drivers also brought Morgan Stanley (16 June) to confirm its strong recommendation to buy the stock(Buy, TP 9€).
The consensus Target Price was 8.22€, 96% the Buy percentage on a coverage of 22 analysts.
Note the publication of the figures on the tyre market for May (http://www.pirelli.com/web/investors/tyre_markets_trend/default.page) which underline a positive trend in the demand in Mercosur and Europe, an improvement with respect to April’s figures.
Categories: Peers & Markets