PEERS & MARKETS
Profit taking on the major international stockmarkets in the week 7-11 December 2009, with sharp losses, particularly in financial securities.
Pirelli & C fell 0.8% to close at 0.429€; with Michelin, the company outperformed the European Auto&Parts sector as a whole (+1pp vs DJ Stoxx Auto).
The analysts’ average valuation of Pirelli was 0.46€, with a BUY recommendation from most (71%) of the coverage, represented by 18 investment banks, with 29% recommending Hold and 0% Sell.
Pirelli RE shares also outperformed their sector average, despite falling 2.1% during the week to close at 0.501 (+2pp vs the Epra Europe Index).
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Categories: Investors Peers & Markets Pirelli Pirelli RE
The auto sector showed a positive trend for the week of October 12 – 16 with Pirelli among the best performers (with a 5.5% increase at 0.42 per share compared to the 2.6% increase of the DJ Stoxx Auto index). Morgan Stanley initiated coverage on Pirelli (“Maestro of Tyres from Italy to Brazil“) with an “Overweight” recommendation and target price of €0.45. There are several factors that make the stock attractive: guidance on the sustainability of the industrial plan does not completely reflect consensus forecasts, the presence in high-growth markets like in Brazil and reduced risks linked with Pirelli Real Estate after its increase in share capital.