Major international stock markets were mixed in the week from August, 27 to August, 31 2012 (Milano +1.5%, Francoforte sulla parità, Parigi -0.6% , Londra -1.1%, Madrid +1.5%). Stocks were affected by concerns on Euro area and Moody’s cut on global economic growth estimates. Markets, however, limited losses in the last trading day after the words of the Chairman of the Fed on Friday. Mr Bernanke opened to the possibility of intervention with unconventional stimulus measures if necessary.
Auto & Parts sector was down 2.9% following fears of a deterioration in the second semester results for German OEMs.
Pirelli ended the week at € 8.75 (-2.4%) in line with the reference sector. The stock still remains among the top 5 Italian Blue Chips with a YTD performance of 34.5%. Average daily number of traded shares was approximately 2.2 million.
Natixis has initiated coverage on Pirelli with a BUY recommendation and a target price of 11€. According to the broker, the driver of the outperformance of the stock in the last two years (premium strategy and improvement of profitability) are still at the basis of the investment case. The consensus Target Price stood at 10.4 € with 75% of the coverage with a “Buy” rating.