The main European stock markets were mixed last week (Milan +0.9%, London -3.3%, Frankfurt +0.3%, Paris -1%, Madrid +1.7%). Trading was affected by renewed tensions in the peripheral countries of the Euro zone. Political crisis in Greece and fears of the country’s exit from the Euro area added volatility and pushed sales. US May Consumer Confidence data was up more than expected (77.8 ps) and helped market sentiment towards the end of the week.
Auto&Parts stocks were flat in the week (-0.4%). Pirelli (8.9€, -4.9%) saw some profit taking after the Q1’012 Results. Year-to-date performance is +36.7%. Analysts’ comments on the results were positive; Morgan Stanley, among others, considers the current stock price a very good entry-point for what is considered a top-pick in the sector.
Average consensus target price went up to 10.4€ with 96% of the coverage with a positive recommendation.