Main European stock markets were mixed in the week from the 9th to 13th July 2012 (Milan -0.1%, +0.1% in London, Frankfurt +2.3%, +0.4% Paris, Madrid -1.1%). After a good start thanks to the manufacturing sector data in the United Kingdom and Italy (both growing in May despite negative expectations), the publication of the minutes of the Fed last meeting reduced the expectations of a new round of Quantitative Easing with impact on markets.
The most affected by the newsflow were Bank and Industrial stocks with a decline respectively of 0.6% and 0.7% (Stoxx European reference).
Pirelli ended the week at € 7,905, down by 4.4% with a daily average of 4.7 million shares traded. The stock was affected by profit taking after an year-to-date performance of +21.5% (+30.6 pp vs FTSE MIB) and by the particular moment of automotive sector (uncertainties about demand in Europe).
The TP consensus on Pirelli amounted to 10.7€ with 87% of coverage with a Buy rating and a 35.4% upside to the market price (13/7).