The main European stock markets were mixed in the week from the 22nd to the 26th of July, 2013 (Milan +1.8%, London -1.1%, Frankfurt -1.0%, Paris +1.1%). The Chinese Premier reassured investors on 2013 growth in the Asian country (at least 7%), but negative surprises came from manufacturing and real estate sector data in the US as well as from disappointing Q2 earnings of large players in the chemical and industrial sectors.
Auto & Parts stocks were stable in the week (sector index -0.3%). Barclays upgraded the sector view while staying cautions (Hold from Sell), on the back of improving market fundamentals in Europe (volume and pricing) and expectations of an upside from emerging markets growth.
Pirelli shares closed the week at 9.65€, up 1.1 percentage points. Volumes traded were low (approx. 1.7 million shares per day, or 22% lower than last month’s average), and tyre market data for June strengthened analyst’s expectations that the European market might be stabilizing (car tyre replacement market was up +3% yoy in June).
Consensus target price stood at 9.7€, with 45% of analysts in the coverage recommending to “Buy” the stock.