A week that saw sharp rises in the international financial markets (Milan +7.1%, London +5.1%, Frankfurt +4.2%, Paris+5.9%). Investors welcomed the go-ahead from eurozone Finance Ministers for the fifth tranche of aid to Greece, worth 12 billion euros, after the Greek parliament’s approval of the austerity plan.
At sector level, the banking industry benefited the most, with a rise of almost 8 percentage points in the sector index, following the weak performance of the previous week.
Pirelli closed at a year high of €7.52 (+8.1% weekly performance; +24.4% since the start of the year) returning to the levels of July 2007. The share’s performance was also boosted by the start of Citi’s coverage of Pirelli,, with a TP of 9€ and a BUY recommendation. According to the broker, its strong recommendation to buy Pirelli is based on its positioning, unique in the sector, on the premium segment, its focus on Emerging Markets, the higher profitability of its Truck business, compared to its competitors, and its prospects for recovering competitiveness on mature markets.
The current consensus target price for Pirelli was €8.25, with a Buy recommendation from 91% of brokers that cover the share.
Categories: Peers & Markets