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.

PEERS & MARKETS

The main international share markets showed a downward trend with losses concentrated mainly in the banking sector (the European share index fell by 2.6%) after the charges made against Goldman Sachs by the SEC. Pirelli ended the week on a par at €0.44 and in line with Michelin and Nokian. A bad week for European Real Estate with the sectoral index (Eprea Europe) down by 2.3% and Pirelli RE down by 3.7% to €0.462.

PEERS & MARKETS

Despite a profit-taking in the Auto & Parts sector (European Reference Index -1.6%), Pirelli reported an increase of 4.9% for week 14-18 of September, up to €0.378 (+6.5 percentage points compared to the European sector). Shares benefited from the restructuring plan announcement that will entail a significant downsizing of corporate structures, leading to minimum savings of 10 million euros per year, expected to take place from 2010.During this week, in consideration of lower corporate costs, six brokerage firms raised their expectations for Pirelli & C, approximately by € 5.5 cents, (Cheuvreux from €0.33 to €0.43, Equita from €0.33 to €0.37, Akros from €0.40 to €0.42, Banca Imi Nav from €0.43 to €0.47, Centrobanca from €0.37 to €0.43, Goldman Sachs from €0.32 to €0.38).

Positive trend also for Pirelli RE which closed the week with a rise of 6.1% overperforming the european real estate index by more than 2 pecentage point.

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