At industry level, it is the Auto that posted the highest increase (+6%), driven by reassuring indications on market trends, especially for Trucks.
Pirelli overperformed the industry, closing at € 7.03, up 7% (+1pp vs. Stoxx Auto). The positive stock trend was supported by encouraging indications on Michelin first quarter sales and by Exane upgrade, stressing Pirelli sound pricing power and bringing the target price from 7 € to 8 €. The latest announcement of a price increase was positively received by the market to offset the higher costs of raw materials.
From June 1, 2011, the Company will increase its prices for Car and SUV Tyres in the U.S. market by 6% to 9%.
Currently, the Target Price Consensus for Pirelli is 7.60 €. Buy is the prevailing recommendation (82%) among the brokers covering Pirelli stock.