ARCHIVE

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.

Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

The main European stock markets were down in the week from the 3rd to the 7th of March 2014 (London -1.4%, Frankfurt -3.5%, Paris -0.9%, Milan +0.9%). Rising tension between Ukraine and Russia led investors to reduce exposure to equity, causing higher volatility and the appreciation of safer assets (gold and oil hit weekly highs at +1.8% and +2.3% on Friday’s close, respectively). On the macro front, the central bankers of England and the EU kept benchmark rates unchanged (ECB at 0.5%, BOE at 0.25%).

Auto & Parts stocks were slightly down in the week (sector index -0.8% vs Stoxx 600 -1.5%); OEMs benefited from the many new product launches at Geneva motor show, in addition to growth in February car registrations in Europe (Germany +4.3%, Spain +17.8% due to government incentives, Italy +8.6%).

Pirelli shares ended the week up one percent at 12.72€, with an average daily trading volume of 2.4 million shares (in line with the previous 4 weeks). The financial market reacted positively to the placement of the 1.5% shareholding (7 million shares) by Intesa SanPaolo at a price in line with current trading (removing stock overhang worries), whereas Brazilian tyre market data (car replacement +18% yoy in January) confirmed the positive trend of the South American market. Today’s Mediobanca valuation upgrade (TP +1€ at 14€) brings consensus Target Price to 12.1€.


Write a comment »

Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

The main European stock markets were slightly up in the week from the 24th to the 28th of February, 2014 (Milan +0.2%, Frankfurt +0.4%, London -0.4%, Paris +0.6%, Madrid +0.4%). On a positive note, the EU revised its 2014 Eurozone GDP growth estimates: +1.2% yoy vs +1.1% forecasted in November; improved outlook for Germany (+1.8% vs +1.7%), France (+1% vs +0.9%) and Spain (+1% vs +0.5%), whereas Italy’s growth is expected down to +0.6% (+0.7% previously). European unemployment in January was in line with expectations at 12% (stable vs December), and the US purchasing manager confidence surprised on the upside. Volatility was up sharply towards the end of the week, as political tension kept rising in Ukraine causing today’s sell-off in equity markets.

Auto & Parts stocks were down in the week (-1% vs Stoxx 600 +0.6%), weighted down by large-cap VW (-6%): the shares factor in the dilutive impact of the preference shares issued to finance the acquisition of Scania (6%/7% dilution according to broker Cheuvreux). Moreover, investors reduced exposure to those stocks most exposed to the Russian market (Renault -2.5%, Nokian -4.9%).

Pirelli shares were up 0.6% in the week, closing at 12.6€ with an average daily trading volume of 2 million shares (-20% vs 4-week average). The deal reached with Bekaert (disposal of steel cord business and long term supply agreement) was already discounted by the market; sector analysts viewed the deal positively, as it increases Pirelli’s focus on Premium tyres, with higher profitability, it reduces exposure to a volatile business (steelcord is mainly a truck tyre component), and it has a positive impact on net debt. Consensus target price stood at 12.04€ with 74% of analysts advising to buy or hold the shares.


Write a comment »

Share to Facebook Share to Linkedin Share to Twitter More...

PEERS & MARKETS

The main European stock markets were mixed in the week from the 17th to the 21st of February, 2014 (Milan -0.2%, London +2.6%, Frankfurt -0.1%, Paris +0.9%, Madrid -0.6%). On the macro data front, negative surprises came from the drop in German consumer confidence (February Zew index down for the second consecutive month) and from the contraction in Chinese manufacturing (February flash PMI). Good news were the US employment, with a drop in jobless claims, whereas the Fed minutes hinted at the possibility that interest rates might be hiked sooner than expected.

Auto & Parts stocks were up in the week (sector index +0.7%), now the best performing sector in 2014ytd with a return 3 times higher than the Stoxx 600 index (+7.6% vs +2.4%). Peugeot led gains following FY13 results and the capital increase agreement with the French State and Chinese partner Dongfeng Motors.

Pirelli shares closed the week stable at 12.53€ (-0.6%) with limited volumes: daily average shares traded at 1.7 million are 43% below the average for the last month. According to data published by Michelin, tyre market trends in January confirmed the rebound in the European Car replacement channel and the weakness in Brazilian OE. Consensus Target Price stood at 12.04€ with 74% of analysts recommending to Buy or Hold the shares.


Write a comment »


4 - 6 of 166 for the category: Peers & Markets