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by Pirelli — Mon, 18 Oct 2010 13:33:03 +0000

The principal financial markets were up at the end of the week 11 to 15 October (Milan +1.5%, London +0.8%, Frankfurt +3.2%, Paris +1.7%) buoyed by the prospect of new measures from the Federal Reserve to stimulate the economy.
At sector level, the highest price rises were in the Industrial (+3.3%) and Auto & Parts (+3.9%) sectors.
Pirelli shares performed particularly well, confirming their position among the best stocks on the market. +6.6% to €6.39. Pirelli outperformed the FTSE MIB (+5.1pp) and the European reference index for the industry (+2.7pp vs DJ STOXX Auto&Parts) once again claiming the position of best Blue Chip share of the week (+47.7pp YTD). Mean trading volumes were steady at around 5 million trades.
After the upgrade of the guidance on the full year 2010, 7 brokers (Intermonte, UBS, Chevreux, Equita, Banca Akros, Banca Leonardo, Exane) raised their valuation of Pirelli by an average of €0.07 with a Target Price di €7 . For Intermonte (Outperform a €7.60) Pirelli was able to bridge the gap in value compared to its peers thanks to a continued focus on tyres, and deserves to be traded at premium, given its business positioning. For UBS (BUY at €7) Pirelli’s positive momentum continued, with the presentation of a new industrial plan that is expected to provide good indications for future operational trends, disposals and the efficiency plan.
This was in contrast with its principal European peers: Michelin +4.4%, Continental +6.8%, Nokian -0.6%.
Pirelli RE closed the week at € 0.434, a fall of 7.6%.

PEERS & MARKETS

by Pirelli — Wed, 13 Oct 2010 16:41:01 +0000

Major international stock markets ended the week in positive territory (Milan +1.8%, London +1.2%, Frankfurt +1.3% and Paris +1.9%) reflecting positive macroeconomic newsflow: official rates near zero in Japan and unchanged for ECB (1%) with positive indications on the condition of global financial institutions from ECB and IMF. The European Auto & Parts sector increased by 1.1%.
Pirelli ends the week positively by 0.7% at € 5.995 after reaching new highs on October 7th (€6.05). The stock is once again confirmed as the best performer on the FTSE Mib +40.5pp YTD. Volumes in line with the last 3 months: 3.5 million trades. Unicredit reaffirmed its BUY recommendation on the stock, raising the TP to €6.6 (from €6.1). The positive turn in the sector and Pirelli’s strategic position compared to its peers, particularly on emerging markets, have led to a review on the companies forecasts: Ebit margin tyre 2010E 8.5% (Ebit € 397 mln ), 9% 2012E (Ebit € 449.7 mln ). Centrobanca confirms positive forecasts (TP €6.29, BUY recommendation) considering Pirelli as a least risky stock of the international sector.
Major European peers ended the week with a mixed result: Continental -0.6%, Nokian +1.7%. Michelin recovered partial losses (-15.05% from the previous day before the share capital increase announcement) ending the week with a +2.7% performance.
Pirelli RE continues its positive trend ending the week at 0.47 increased by 6.7%: remaining the only positive stock from the sector along with IGD (+8.3%)

PEERS & MARKETS

by Pirelli — Tue, 05 Oct 2010 15:00:48 +0000

International stock markets ended the week September 27th – October 1st negatively (Milan -1.1%, London -0.1%, Frankfurt -1.4% and Paris -2.4%). Ongoing conflicting macroeconomic data, expected decisions by Ecofin on the debt of non-core countries from the Euro zone and fear on Irish and Portuguese bonds have raise doubts on purchase prices and encouraged profit-taking.
The Oil&Gas sector and the Technology sector have shown good performance of +1.6% and +0.33%, respectively; which are the only sectors that ended positively.
Pirelli showed a positive trend for most part of the week, exceeding the share price of 6 euros (€6.06 reported last September 30), thereby reflecting the increase on US prices (up to 7% on the entire range) and reflecting the positive opinion from stock analysts during the Paris Motor Show on Pirelli’s strategic position vs. its peers. However, end-of-the-week profit-taking (-2.6% European Reference Index) lead to drop in Pirelli stock to € 5.96 (-0.4%). Volumes settled at an average of 5 million pieces (higher compared to the last three months).
The Consensus target price for Pirelli settles at €6.35 (a buy recommendation prevails on coverage by analysts: 79%).
Michelin drops in view of the unexpected announcement on the share capital increase of €1.2 billion, ending the week with a 14.8% decline. The stock also suffered downgrades by Merrill Lynch and Morgan Stanley.
However, the market reacted different to the announcement of Continental (+0.9%) to issue an additional bond of €1.25 billion (in 2 tranches with maturity on 2016 and 2018 and coupons of 6.5% and 7.125%, respectively). Nokian also ended the week positively (+1.3%).
Rebound by Pirelli RE of 1.1% to €0.44.

PEERS & MARKETS

by Pirelli — Tue, 28 Sep 2010 18:42:06 +0000

The week 20-24 September was a positive one for the international markets (Milan +0.4%, London +1.6%, Paris +1.6%, Frankfurt +1.4%). Trading received a boost from the positive macroeconomic data in the US (new home sales +7.6% in August, guide index +0.3%) and Europe (industry orders +11.2% since the start of the year).
At sector level, the highest rises were in Auto & Parts (+3.3%) and Industrial shares (+2.0%).
Pirelli closed the week at €5.98, a rise of 2.8%. Trading in Pirelli shares was up, with mean daily volumes of almost 4 million trades, compared to the roughly 3 million of the previous weeks. The stock was buoyed by the positive opinion of the analysts with Banca IMI who, given the new industrial plan presented by the company, categorised it as special situation (NAV at €7.6, compared to the previous €6.9) and Royal Bank of Scotland (RBS),which started the coverage with a BUY recommendation and a TP at €7. According to RBS favourable geographic positioning, combined with an improved product mix and the price increase will allow Pirelli to achieve an Ebit margin of over 10% by the end of 2012. For Morgan Stanley, however, all the positive catalysts on the share have already been discounted by the market, and their opinion is Underweight, but with a TP of €6.20 instead of the earlier €5.72.
The Consensus TP for Pirelli is €6.31 (Buy the prevalent recommendation: 79% of the coverage).
Pirelli again confirmed its status as the best share in the FTSE Mib basket, with a relative performance +40.8 percentage points higher than the FTSE Mib.
A slight downturn in the weekly performance of Pirelli RE, which closed at €0.44 (-0.8%).

PEERS & MARKETS

by Pirelli — Tue, 21 Sep 2010 10:35:20 +0000

Little change on international markets in the week from 13 to 17 September (Milan +0.9%, London +1.4%, Paris +1.5%, Frankfurt +1.3%) after the positive performance of recent weeks. The sectors that saw the strongest rises were Retail (European reference index +2.7%) and Auto (+2%).
Pirelli closed the week at €5.82, a rise of 3.1%. The share price was buoyed by the announcement of the latest price increase in Europe for the entire product range, reflecting solid price discipline in the industry. Of note was Intermonte’s upgrading of Pirelli, increasing the TP to €7 (from €6.1) with an Outperform recommendation. Upside drivers included the improved visibility of the company on the tyre market thanks to the recovery in demand, particularly in emerging markets, and the announced increase in production capacity (+20% over the next 3 years). The Consensus TP is now €6.24 (with Buy recommendations from 83% of the coverage). Pirelli again confirmed its status as the best share in the FTSE Mib basket, with a relative performance 37 percentage points higher than the Milan blue chip list.
Pirelli RE shares continued to rise, outperforming (+11%) both the European Real Estate index (+10pp) and its Italian peers.

PEERS & MARKETS

by Pirelli — Mon, 13 Sep 2010 18:26:46 +0000

The upward trend of international markets continued in the week from 6 to 10 September (Milan +0.9%, London +1.4%, Paris +1.5%, Frankfurt +1.3%).
The auto sector rose too (+4.2%) benefitting from the positive sales results released by Volkswagen for the first eight months of the year (+13.4% YTD; +11.2% YoY up to August) especially in the Chinese, Indian and US markets.
Pirelli reflected the positive trend of the sector closing up by 3.1% at 5.64€ and confirming its position as best share from the start of the year within the FTSE Mib basket. Sustaining it were prospects of improvement in guidance for the FY 2010 and expectations for the 2011-2015 plan. The Group also announced an increase in its European prices: +4% on CAR & Light Truck from 1 October and up to 6% on Truck from September.
For the fourth year running Dow Jones confirmed Pirelli as leader for sustainability in the “Autoparts and Tyres” sector; Pirelli was also the only Italian company to be the world leader in its sector.
A significant rise for Pirelli RE: +7.2%, performing markedly higher than the European Real Estate Index (+5.2 percentage points).

PEERS & MARKETS

by Pirelli — Mon, 12 Jul 2010 13:15:29 +0000

Evident signs of recovery on the international financial markets in the week 5 to 9 July, with rises of up to 10 percentage points, particularly in the finance sector. Buying has been fuelled by leaks about the stress tests of the European Union on the major banking groups, which should not show deficits (+9.6% European bank index), higher global growth forecasts for 2010 from the IMF (4.6%, compared to the previous figure of 4.2%), and the ECB decision to not change the lending rate.
Pirelli closed the week at €0.477, a rise of 7.4%, clearly outperforming the sector index (+2.2 percentage points compared to DJ Stoxx Auto). Trading volumes were lower (35 million shares, about half the daily average of the last three months), but in line with the overall dynamics of the market. The buy recommendation on the share by a majority of analysts was confirmed (83% Buy). The consensus target price was stable at €0.53.
Pirelli RE recovered decisively, rising to €0.36, with market performance of 11.6%, the best in the Italian Real Estate sector.

PEERS & MARKETS

by Pirelli — Tue, 29 Jun 2010 09:58:13 +0000

More fears about Greece caused a downturn in the financial markets in the week 21-25 June (Paris -4.5%, London -3.9%, Milan -2.8%, Frankfurt -2.4%). Five year Greek credit default swaps rose to 959 base points (a new historic record): projections against Greek bankruptcy risk rose 56%.
At sector level, rumours about the probable introduction of a European tax on the banking sector (not approved by the weekend’s G8 meeting ) and the downgrading of BNP Paribas by Fitch have provided an incentive for sales of European bank stock, which lost 4% from 21 to 25 of June.
The automotive sector was also weak (DJ Stoxx Auto&Parts -2.7%) with Pirelli at €0.463, a fall of 4.1%, with below average daily volumes. Kepler renewed its positive view of Pirelli stock (Buy, TP €0.54), highlighting expectations that the results of the core Tyre business would exceed objectives for 2010.
Blackrock, one of the major foreign investment funds, announced that it had increased its holding in Pirelli & C. to over 2%. The presence of Blackrock illustrates the renewed interest expressed by international funds in investing heavily in Pirelli.
The property sector’s stock market performance reflected the disappointing numbers of US home sales to May (at their lowest since 1970 ) with Pirelli RE closing at €0.351 (-9.3%). The performances of its principal Italian peers were similar (Bastogi -5%, IGD -4.3%).

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PEERS & MARKETS

by Pirelli — Mon, 21 Jun 2010 15:39:33 +0000

Pirelli ends the week June 14-18 at € 0.483 (+2.2%) after reaching a high of € 0.50, corresponding to the price on September 2008 before the collapse in the stock market. Pirelli remains the among the best performing stocks of the FTSE Mib (+15%) since the beginning of the year.
HSBC initiated coverage on Pirelli with an Overweight recommendation and target price of €0.55. According to HSBC, Pirelli is among favourite stock picks of the European tyre sector due to its product positioning and its strong presence in Latin America.
In view of the plan for separation of Pirelli RE, Intermonte raised the target price on Pirelli to €0.53 (from €0.52). The holding discount (12%) cancellation is more than enough to offset the cancellation of the shareholding in Pirelli RE from NAV of Pirelli & C. A neutral recommendation prevails in view of the recent stock rally.
Consensus forecasts on the stock are stable: TP €0.52 with a prevailing Buy recommendation (83%) on coverage by 21 business banks.
Strong rebound by Pirelli RE of +4.7% to €0.387 whereas major Italian real estate competitors show a mixed trend (Risanamento -3.9%, Beni Stabili +3.6%).

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by Pirelli — Tue, 15 Jun 2010 15:25:34 +0000

BCE’s statements last June 10th on monetary policy has helped lessen investors’ fears on the European economy, reflecting positively on the stock market. The Milan stock market closed the week ending June 11th with positive gains of 5%, whereas Paris Stock Exchange rose by 3% and London Stock Exchange by 1%.
The European Central Bank has decided to leave its benchmark interest rate unchanged and supported the banking system by providing maximum added liquidity through fixed rate tender auctions.
Banks, as well as the automobile and building sector showed the best trend (+5% on European Indices).
Pirelli rebounded back to its year high, closing the week at € 0.472 (+4.8%). The positive consensus forecast for Pirelli remains unchanged: target price €0.52 and a buy recommendation on the coverage by analysts (88%).
Pirelli RE also showed slight gains, closing the week at € 0.37 (6.6%) reflecting goods news on a possible amalgamation and negotiation with other real estate companies. Main market peers showed a mixed trend (Aedes -3%, Brioschi -8% and Risanamento +12% due to news regarding the sale of the former Falck di Sesto San Giovanni Area).

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