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Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.


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PEERS & MARKETS

The main European stock markets continued to deliver positive returns in the week from the 29th of April to the 3rd of May (Milan +2.2%, London +1.5%, Frankfurt +3.9%, Paris +2.7%, Madrid +3.0%). Expectations of an intervention by the ECB to lower the benchmark interest rate sustained the market (rate lowered by 25bps to 0.5% in line with expectations).

Auto & Parts stocks were up, with the European Stoxx index gaining 4.5% as the main players reported Q1 earnings. Investors reacted positively to results by the main German OEMs; car makers underlined how inventory is under control and the second half of the year should see an uptick in earnings.

Pirelli closes the week at 8.2€, up 6.8% with an average daily volume of 2.3 million shares. According to CITI, Pirelli’s exposure to emerging markets should allow the company to outperform the sector for what concerns volume growth in the first quarter of 2013. Goldman Sachs expresses a more cautious view on the sector, due to ongoing competitive pressures in mature markets.


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PEERS & MARKETS

Key European stock markets were up in the week from the 3rd to the 7th of September 2012 (Milan +6.7%, London +1.5%, Frankfurt +3.5%, Paris +3.1%, Madrid +6.2%) thanks to the announcement of an unlimited government bond buying program by the ECB, welcomed by investors. Important indicators of economic activity, however, continued to disappoint: US manufacturing contracted in August for the third month in a row and job growth slowed more than expected adding only 96,000 jobs (forecast was 130,000 units); this fueled expectations of a stimulus intervention by the FED.

Auto & Parts stocks performed in line with the market (+1.9% in the week vs. European index Stoxx 600 +2.6%). New car registrations for the month of August showed a negative trend for the major markets: Italy -20%, France -11% and Germany -5%.

Pirelli shares ended the week at €8.96, up 2.3%, with limited trading volume (2.6 mln shares traded on average per day, lower than three month average at 4 mln shares). In a report on the tyre sector, French broker Cheuvreux confirmed the appeal of the industry thanks to the current discount on historical multiples and the positive earnings momentum. According to the analyst, Pirelli stock should continue to outperform on the back of the company’s right strategy and excellent execution; “Buy” rating confirmed, as well as the €11Target Price.


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PEERS & MARKETS

Major international stock exchanges were mixed in the week from July 2nd to 6th of July 2012 (Milan -3.8%, London +1.6%, Frankfurt -0.1%, -0.9% Paris, Madrid -5.1%). Despite the cut in official interest rates by Central Banks of Europe and China (-25bps, Bank of China has made the second cut in a month) markets was affected by fears of a worsening in the macroeconomic environment. The President of the ECB, Draghi, during the press conference on Thursday (July 5) showed that economic growth in the euro area remains weak; the picture is worse than just a month ago since growth across the euro area is weakening, including countries that before were continuing to grow.

Negative newsflow affected Bank stocks: the reference Stoxx was down by 1 .4%. Brokers were expecting a new financing plan (LTRO3, Long term refinancing operation)  but according to the President of ECB this will not be taken into account in the short term.

Auto&Parts sector was positive by 1.4%.

Pirelli ended the week virtually unchanged at € 8,265 (-0.4%) with an average daily trading volume about three million units. Pirelli stock is still among the top 4 best performer in the FTSE MIB YTD: +27.1% (+36.1 pp vs FTSE MIB).


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