Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.

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The main European stock markets were mixed in the week from the 7th to the 11th of January 2013 (Milan +3.2%, London +0.5%, Frankfurt -0.8%, Paris -0.6%). In its Thursday meeting the European Central Bank, as expected, left its benchmark rate unchanged at 0.75%, commenting that the economy is still weak and a recovery is expected only in the second half of 2013. Concerns arose, moreover, from the increase in Chinese inflation over the month of December (+2.5%, more than expected) which could limit the scope for monetary easing.

Auto & Parts stocks retreated in the week (Stoxx A&P was down 1%); European car registration data for the month of December showed that the five largest markets (France, Spain, Italy, Germany and UK) contracted 14% on a yearly basis. Valuations near to 10-month lows and upside in case of an improvement in consumer confidence led Goldman Sachs analyst to reiterate its attractive stance on Auto & Parts stocks in 2013. The broker is however more cautious on tyre stocks given their strong performance in 2012 (+44% on average) and possible pricing pressure ahead; accordingly, all stock recommendations and target prices were revised down.

Pirelli stock was up +1.8% in the week, closing at €9.11 with an average daily traded volume of 3.2 million shares. Bank of America – Merril Lynch initiated the coverage on the stock with a “Buy” recommendation and an €11.5 target price. As a result, Pirelli average target price stood at €9.9 with 79% of analysts recommending to “Buy” or “Hold” the stock.

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