PEERS & MARKETS

Main international markets recorded a weak performance from 30 May to 3 June  (Milan -0.1%, London -0.4%, Paris -1.4%) with London and Wall Street closed on 30 May and bank holidays in Europe (2 June Italy, France) leading to reduced trading.

Despite approval of the new Greek aid plan, uncertainty on the debt situation of the European Union peripheral countries persisted. Newsflows included incoming macro data on employment and purchases in USA, below expectations.

 Pirelli closed at 6.76€ (-1.1%) in line with the European Auto&Parts sector (the European reference index was down by -1%) with average daily volumes of slightly over 2 million pieces.

PEERS & MARKETS

Uncertainty about economic growth and the weakness of the euro have dominate the performance of European stock markets in the week 31 May to 4 June: -3.8% Milan, -1.3% London, -1.7% Paris.
In Milan, banks securities were particularly affected (European sector -3.5%) offset by industrial stock and securities with a high degree of geographical diversification.  This was reflected for Pirelli & C shares, which closed the week 6.6% up at  €0.451, clearly outperforming the industry index (+0.4% DJ Stoxx Auto & Parts) and its European peers (Michelin +0.7%, Continental -0.6%).
Analysts’ valuation of Pirelli & C shares remained stable: target price 0.52€ and recommendations that were predominantly to BUY (88% of coverage)
Pirelli RE also performed well, closing at €0.345 (+0.4%), in contrast to the negative performance of its main peers (Risanamento -1.2%, Beni Stabili -1.5%).

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PEERS & MARKETS

European stock markets partially recover losses from previous sessions and close the week May 10-14 with a solid gain.
The announcement of the maxi-plan of up to €750 billion to help EU financial stability favoured the gains.
Industrials also show solid gains (+7.6% European Reference Index) as well as the Auto & Parts sector (+8.6%).
Pirelli at €0.45 (+10%) is among top performers European tyre stocks, reflecting positive quarterly results and improvement on the guidance for 2010.  Equita and Centrosim confirm a target price (€0.54 and €0.52, respectively) and their buy recommendations on the stock; Churchill Capital also initiated coverage on Pirelli & C.
The consensus on Target Price for Pirelli settles at €0.52; a buy recommendation prevails on the analyst coverage (88%).
However, Pirelli RE closes the week at €0.35 with a 4.4% decrease.