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 up in the week from the 24th to the 28th of June, 2013 (London +1.6%, Frankfurt +2.2%, Paris +2.2%, Madrid +0.8%, Milan -0.1%). Investor sentiment was helped by positive commentary from several Federal Reserve officials, suggesting that investor concerns on the timing and magnitude of the reduction in economic stimulus have been excessive. In addition, the Chinese central bank avoided the risk of a credit crunch in local money markets, providing enough liquidity to stabilize short-term interest rates: after reaching a high 14%, the interbank interest rate went back to approximately 4.5%, close to 2013 average of 3%.

Auto & Parts stocks advanced during the week, with the European sector index posting a 4.8% gain led by auto stocks. Two German car producers announced to have reduced factory downtime in an effort to meet rising demand for newly introduced models, whereas preliminary data showed the French car market in Q2 2013 recorded only a limited reduction in sales volumes (-6% according to Deutsche Bank, vs -15% in Q1 2013).

Pirelli shares were flat in the week, closing at 8.90€ with an average daily traded volume of 2.2 million stocks. Growth potential coming from the company’s exposure to markets such as China and Latin America, together with the assumption of stabilizing pricing and volumes in Europe, led Exane BNP Paribas to upgrade Pirelli’s Target Price (+0.5€ at 10.5€), confirming a “Buy” rating.


Write a comment »

Insert a comment 

Comment form

CAPTCHA image

Pirelli values your privacy. The information you submit is subject to our privacy policy in accordance with the Italian privacy law (art. 13 - D.Lgs. 196/03).