The main European stock markets were almost flat in the week from the 18th to the 22nd of November (Milan +0.7%, London -0.3%, Frankfurt +0.5%, Paris -0.3%, Madrid -0.2%). According to the minutes of the FED meeting, tapering of economic stimulus (worth 85 billion $ per month) should begin gradually in the coming months; economists surveyed by Bloomberg predicted it to start as early as March 2014. Within the main economic data released during the week, Chinese manufacturing activity in November surprised negatively and so did business confidence in Germany; positive news came out of US retail sales.
Auto & Parts stocks were up during the week (+1.9%), led by auto manufacturers supported by the positive trend of the car market in October (global market +9.3% in the month, +2.1% YTD). On a regional basis, China outperformed with a monthly growth rate of +24%, followed by Japan (+18%), USA (+11%) and Europe (+5%).
Pirelli closed the week at 11.31€, up 4.6% trading an average of 2.2 million shares per day, in line with the previous 3 months.
3 global brokers published an update report on the stock (HSBC, UBS and Goldman Sachs), upgrading their valuation by an average of 1.3€ per share; analysts appreciated the Industrial Plan’s focus on cash flow generation, as well as greater details on the Industrial Business and regional strategy.
Consensus Target Price taking into account the 15 most recent publications stood at 12.15€ with 50% of analysts advising to “BUY” the shares.