The main European stock markets were up in the week from the 23rd to the 27th of March, 2012 (Milan +2.6%, London +0.1%, Frankfurt +0.8%, Paris +2.4%, Madrid +1.5%). Indices started weak, due to the political news flow in The Netherlands and France; trading in the remainder of week was supported by the successful placement of European sovereign bonds (Italy, Spain, The Netherlands), positive leading indicators in the USA (real estate and manufacturing) and better than expected Q1 ’12 results (according to Goldman Sachs, 45% of companies beat consensus by more than 5%).
Auto & Parts stocks (+5%) led gains among European equities (Stoxx 600 +0.5%), followed by Industrals (+2%).
Pirelli shares outperformed the market, advancing +6.8% at €9.3. Daily average trading volume amounted to 3.6 million shares. Italian broker Centrobanca upped the stock’s Target Price (€10 from €9.37), confirming the “Buy” rating. The analyst highlighted the good prospects of the business in the medium term, thanks to the expansion in Russia and the ongoing improvement in production efficiency. Consensus Target price is at €10.06, with 91% positive recommendations.