PEERS & MARKETS

Major European stock markets were down in the week from November 12 to November 16, 2012 (Milan -2.1%, London -2.8%, Frankfurt -3.0%, -2.4% Paris, Madrid -0.6%) after disappointing U.S. macroeconomic data on industrial production in October (-0.4%, below expectations) and unemployment (Job claimnx were 22% more than the previous month). On the European side, the maturity of the Greek sovereign debt and German economic data showing a slowdown in GDP in the third quarter (+0.2% vs. +0.3% expected) continue to worry investors.

Auto&Parts stocks were down as well (-2.6% Stoxx reference) following October car registrations data in Europe still down compared to the same month of 2011 (-4.8%).

Pirelli closed the week at € 8,025 (-6.1%, +23.4% performance year to date) with an average daily trading volume of just over 3 million. The average target price updated after the results of the first 9 months of 2012 reported earlier this week, stands at  € 10 (+25% upside on the Friday closing price); 91% of the coverage with a positive recommendation on the title (57% Buy rating).

PEERS & MARKETS

Main European stock markets were up on the week from October 29 to November 2, 2012 (Milan +1.2%, London +1.1%, Frankfurt +1.8%, Paris +1.7%, +2.5% Madrid). Stock exchanges benefited from U.S. October macroeconomic data on Consumer Confidence (the highest since 2008) and Manufacturing (more than 50 points, the threshold of the recession) which were both above expectations.

Auto & Parts sector delivered positive returns (+3.8% Stoxx Auto) thanks to a number of encouraging quarterly results and good market data for the U.S. market: car sales were up 7% yoy in October with Premium European OEMs showing a double-digit growth (+15 %).

Also european tyre stocks were positive following the good reporting season with Pirelli up by 5.2% at € 8.97 and an average daily trading volumes of about 2.7 million. The stock continues to be among the 10 top-performers in the FTSE-Mib thanks to a YTD performance of +37.9%.

Average Target Price was unchanged in the week at €10.3 (15% above Friday’s close price), as well as the percentage of analysts with a positive recommendation on the stock, 91% of total.