Positive week for the main stock markets the one from November 11th to 14th (Milan +2.8%, London +0.3%, Frankfurt +1.5%, Paris +0.8%). The markets were backed by the measures aimed at restraining the Italian public debt.
Sustantially stable the auto&parts sector wich increased by 0.5%.
Brilliant performance by the Pirelli stock, which closed the week at €7.16 (+14.5%, +14pp vs auto&parts and +11.7pp vs FTSE Mib), with high volumes (7.5mln the weekly average vs 5.3mln monthly average). The market favorably welcomed the Industrial Plan 2012-14, which was presented by Pirelli’s Top Management in London on the 9th of November.
6 target price upgrades (RBS 9.0€ from 7.5€, Intermonte 9.0€ from 7.50€, Fidentiis range 9.0-9.4€ from 8.3-8.5€, Exane 9.0€ from 8.5€, Chevreux 8.9€ from 8.2€, Mediobanca 8.0€ from 7.0€). Targets are ambitious and above consensus estimates, but feasible given a clear strategy, a consolidated business positioning on premium and a solid track record of delivering results.