The main European Stock markets were up in the week from the 24th to the 28th of March, 2014 (Milan +2.5%, London +0.9%, Frankfurt +2.6%, Paris +1.8%, Madrid +2.7%); the benchmark index Stoxx 600 recovers from the drop experienced in the first two weeks of March, owing to political tensions between Russia and Ukraine, and brings 2014 YTD performance to +1.7% on the back of positive EU confidence data (consumer confidence improved in Germany, Italy and France).
Auto & Parts stocks advanced (sector index +3.7% vs Stoxx 600 +1.8%), Premium OEMs in particular (VW +4.8%, Daimler +4.4%, BMW +4.3%) following news flow of increased investments in China (Daimler Beijing’s site capacity to double, BMW to produce 4 million vehicles per year by 2018).
Pirelli shares were strongly up in the week and closed at 11.58€ (+6%) with an average daily volume of 6.6 million shares (approximately twice the 3-month average).
Markets reacted positively to the publication of full year 2013 results and especially to the confirmation of 2014 targets, confirming the solidity of Pirelli’s business model despite the volatility of the external scenario (emerging market foreign exchange, in particular). 5 brokers upped the valuation on the stock, on average by 1€. Consensus target price stood at 12.41€, with 79% of analysts advising to Buy or Hold the shares.