ARCHIVE

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.


Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

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.


Write a comment »

Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

The week from July 15 to 19 was a positive one for the major European Markets following the good macroeconomic newsflow (Milan +4.5%, London +1.3%, Frankfurt +1.4%, +1.8% Paris, Madrid +1.3%). In the semi-annual testimony to the Congress Fed Chairman Bernanke reassured markets on the continuation of a highly accommodative economic policy: a slowdown in liquidity injections will take place only in case of strong acceleration in the U.S. economy. Positive signals also came from the European Central Bank that were expanding the list of assets accepted as a collateral to make it easier to purchase bonds from countries in difficulty.

Another positive week for European Auto&Parts sector (+2.6%) pending the full start of the reporting season for the second quarter 2013. The index ended the week with the best sector performance YTD: +17.7%, +10.5 percentage points versus the Stoxx 600. European tyre stocks was also up after positive data on market in June that confirmed the good performance of Emerging Markets and an ongoing stabilization in Europe.

Pirelli ended the week at € 9.54, up 10.9% compared to last week with an average daily trading volume of about 3.3 million pieces. In addition to the positive indications that emerged from the data of the tire market in June (in particular the strong performance of Brazil), the stock’s performance reflected the upgrade by JP Morgan to Overweight (from Neutral) and the increase of target price to 12 € (9.5 € ).

The consensus target price therefore stands at € 9.70 with 45% coverage of the recommendation with “Buy”.


Write a comment »

Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

The main European stock markets were up from the 8th to the 12th of July 2013 (London +2.7%, Frankfurt +5.2%, Paris +2.7%). Investor sentiment was sustained by the increased clarity around monetary policy in the United States, with the Fed Chairman renewing the commitment to monetary easing, and by an upbeat start of the US reporting season. Milan underperformed (-0.7%), as rating agency Standard and Poor’s downgraded the country’s credit rating (BBB from BBB+), negatively impacting financial stocks.

Auto & Parts stocks were up during the week (sector index +6.6%), thanks to the outperformance of Auto stocks: the publication of sales figures for the Chinese market in June shows volumes growing by an average 33% yoy for the main Premium players. This positive trend was confirmed by the release of preliminary Q2 2013 figures by an important German luxury brand, beating analysts’ estimates.

Pirelli shares were volatile during the week and closed at 8.6€ (-4%), on profit taking and limited trading volume (1.8 million shares per day, lower than 3 month average at 2.7 million shares); the stock recovered from the decline at the beginning of the current week thanks positive data on tyre market, Brazil in particular, and is trading in line with the closing price of the previous week. Average target price stood at 9.55€, with 83% of analysts advising to “Buy” or “Hold” the stock.


Write a comment »


12