International stock markets were down (Milan -8.5%, London -3.7%, Frankfurt -5.3%, Paris -4.7%) during the week from the 12 December to the 16 December, after Moody’s confirmed the intention of reviewing the ratings of the Eurozone countries and of EU from 1Q12, since no effective measure were implemented at the EU summit of the previous week. Moreover, the Fed didn’t announce a new quantitative easing (QE3), and no progresses were made on the Eurozone debt crisis.
The Auto & Parts sector was down 7.8% with sales on all stocks.
Pirelli closed the week at €6.3 (-7.7%), in line with the auto&parts sector. According to Centrobanca (BUY & TP €8.1) Pirelli’ strategy (only player investing only in premium segment), is expected to be a winning strategy to save margin even in a contest of global slowdown/no growth.
The average consensus Target Price is €8.51€ with BUY recommendations from 88% of brokers.