The main European stock markets advanced in the week from the 9th to the 13th of September 2013 (Milan +2.9%, London +0.6%, Frankfurt +2.8%, Paris +1.6%). While international diplomacy continued in its efforts to avoid a military intervention in Syria, good news came out of the main Asian economies: Chinese industrial production was up 10.4% in August, more than expected, and Japanese GDP expectations for Q2 2013 were revised upwards to 3.8% (previous estimate was +2.6%, both consumption and investments surprised on the upside).
Auto & Parts stocks were up during the week (+4.5% vs +1.8% for the Stoxx 600 index of European Blue Chips), helped by the positive tone of the main European premium OEMs at Frankfurt Motor Show. Tyre stocks advanced as well; according to HSBC’s analyst the market, following the positive signs given in August, should confirm the stabilization trend in September. The current trend in raw material prices, moreover, should help profitability in H1 20.14.
Pirelli closes the week at 9.48€, up 1.2% with an average of 1.4 million shares traded per day (in line with 4-week average).
Consensus Target Price is stable at 10.1€, with 45% of analysts advising to “Buy” the stock.