PEERS & MARKETS

The main European stock markets were up in the week from the 27th to the 2nd of March, 2012 (Milan +2.5%, London -0.5%, Frankfurt +0.8%, Paris +1%). Investors reacted positively to the liquidity injection by the ECB into the banking sector (three years, 1% interest rate), which benefited the bond market (EU government bond yields generally retreated in the week).

Auto & Parts stocks were slightly down (Stoxx index -0.6%), due to uncertainties related to rising oil prices (Brent futures $123/barrel).

Pirelli closed at €7.895 (-0.4%, in line with the sector). Broker Mediobanca upgraded the stock’s Target Price from €8 to €10, confirming the Outperform rating. According to the analyst, Q4 2011 results should confirm the good profitability trend, thanks to price/mix growth which should compensate weak volumes.

Tyre peers’ stocks performance was subdued: Michelin (-2%), Nokian (-0.4%). Continental outperformed (+2.6%) after presenting FY11 results and an optimistic market outlook for FY12.

PEERS & MARKETS

It was a very volatile week (from the 9th to the 13th) on the international stock markets (London -0.2%, Paris +1.9%, Frankfurt +1.4%) on the continuing rumors about EU countries debt de-rating by the main agencies.

Piazza Affari (+2.5%) emerged as the best performing Market in Europe thanks to the good quarterly auction of Bot. Italian bonds was placed with a yield down to 2.735%, dropped by a half since last December.

Pirelli Investor Relations

PEERS & MARKETS

Fears about the economy pushed European stock exchanges down, closing over 4 percentage points down on the week 28 June to 2 July 2010 (Milan, -4.4%, London –4.1%, Paris –4.9%, Frankfurt –3.9%). Sales were stimulated by the worse-than-expected US macroeconomic data (unemployment, consumer confidence and property sales). 
Pirelli shares (4% down at € 0.444) fell less than other European auto industry shares (reference index –4.8%) due in part to the positive views expressed by Equita (BUY with a Target Price of € 0.54) and Chevreux (Outperform and a Target Price up from € 0.51 to € 0.55 ), which saw Pirelli Tyre estimates rise against the market trend.  .
The average consensus valuation of Pirelli & C was  € 0.53, with 83% Buy recommendations on a coverage of 21 brokers.
The negative data on the US property market pushed real estate shares down, with Pirelli RE at € 0.322 (-.83%).