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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.

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PEERS & MARKETS

The main European stock markets were up in the week from the 13th to the 17th of January, 2014 (Milan +2%, London +1.3%, Frankfurt +2.8%, Paris +1.8%, Madrid +1.7%), on the back of supportive macro data: the World Bank upgraded its global GDP growth expectations for 2014 (+3.2%, previous estimate 3%), and positive news came out of US retail sales (+0.4% in December) as well as industrial production in Europe (+1.8% in November).

Auto & Parts stocks were up strongly (+5% vs Stoxx 600 +1.8%); mass-market OEMs led the gains, as the European car market showed its strongest monthly gain since December 2009 (+13.3% yoy in December, UK +23.4%, Germany +5.4%, Italy +1.4%). Moreover, investor sentiment was supported by positive commentary coming from the Detroit motor show: the European car market should return to moderate growth in 2014 (+3% according to Goldman Sachs).

Pirelli shares closed the week up 7.1% at 12.63€ with an average daily trading volume of 3.6 million shares.
J.P. Morgan confirmed its positive view on the stock (Overweight rating, 13.5€ Target Price): according to the analyst, Pirelli’s operations in Russia will break even in 2014 and the company will increase its retail penetration both in Europe and South America, maintaining a strong pricing power and reaching an Ebit margin of 14.5% in 2015.

Consensus target price stood at 12.2€ with 83% of analysts recommending to Buy or Hold the shares.

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