PEERS & MARKETS

The main European stock markets were up in the week from the 21st to the 25th of May 2012 (Milan +0.8%, London +1.6%, Frankfurt +1.1%, Paris +1.3%), after G8 leaders said they are ready to take the “necessary steps” to aid growth.

Bank stocks rebounded (+2.2%), after being down 9.8% over the last month.

Pirelli closes the week at €8.03, down 6%, in line with Nokian. The year-to-date overperformance of the tyre sub-sector (+31% vs Stoxx 600), together with uncertainties over the economic outlook, prompted Goldman Sachs to turn more cautious on tyre stocks in the short term. The broker confirms its positive stance on Pirelli: solid fundamentals and appropriate strategy which will allow the achievement of 2012-2014 targets. The revised target price on the stock is €13.5 (previous was €13.7) – the second highest in the coverage – with a Hold rating. Differently from other brokers, Goldman Sachs adopts a relative rating within the whole Auto & Parts sector: according to this methodology, Pirelli – which gained 30% since the beginning of the year – provides a lower upside if compared with other stocks in the sector (Pirelli +60% vs. +160% Faurecia).

Pirelli Investor Relations

PEERS & MARKETS

The main European stock markets were down in the week from the 9th to the 13th of April 2012 (Milan -5.8%, London -0.9%, Frankfurt -3.0%, Paris -3.8%). Trading was affected by the renewed worries around the sovereign debt of Southern European countries and the global economic trend (Chinese GDP in the first quarter of the year and US consumer sentiment data were worse than expected).

Auto & Parts stocks (-3.8% in the week) were affected by weak European car registration data, showing a 9% decline over last year.

Pirelli stock showed a different trend, closing the week flat at 8.77€, with an average daily volume of 4.3 million shares.

PEERS & MARKETS

The main European stock markets were down in the week from the 26th to the 30th of March, 2012 (Milan -3.1%, London -1.5%, Frankfurt -0.7%, Paris -1.5%, Madrid -3.3%). The decision to increase the European rescue fund to € 800 bln (partially expected) was not enough to balance the renewed worries surrounding the Eurozone sovereign debt.

Pirelli closes the week at €8.92 (+1.1%, with daily average volumes of 4.4 mln), outperforming the Auto & Parts index (-0.8%). In the week, broker Société Générale upped the valuation of the stock, setting the Price Target at €10.2 (from €8.20), while confirming the “Buy” rating. According to the analyst, FY 2011 results provided support to the positioning of Pirelli in the Premium segment and in Latin America.

The first quarter of 2012 marks a positive performance for Pirelli, with the stock up 37.1%, better than the European Auto & Parts index (27.8%) and Milan (+5.9%).