The positive trend in the international markets continued in the week 7-11 February (Milan +0.3%, London +1.1%, Frankfurt +2.1%, Paris, +1.3%). At sector level, Auto & Parts shares recovered (European reference index +7.2%), benefiting from the positive reporting season and reassuring outlook for 2011 shared by several companies (Faurecia, Michelin, Nokian).
Within the sector, Tyre shares grew strongly, with Pirelli closing the week at €6.115 (+8.4%, +1.2pp vs Stoxx Auto) with an average trading volume of approximately 5.6 million per day.
Mediobanca revised its valuation of Pirelli shares upwards to €6.87 (from €6.82), forecasting results that outperform the guidance or FY2010.
The consensus target price for Pirelli was €7.0, and the recommendation is primarily Buy (63% of analysts’ coverage).