13/10/2010

PEERS & MARKETS

Major international stock markets ended the week in positive territory  (Milan +1.8%, London +1.2%, Frankfurt +1.3% and Paris +1.9%) reflecting positive macroeconomic newsflow: official rates near zero in Japan and unchanged for ECB (1%) with positive indications on the condition of global financial institutions from ECB and IMF. The European Auto & Parts sector increased by 1.1%.
Pirelli ends the week positively by 0.7% at € 5.995 after reaching new highs on October 7th (€6.05). The stock is once again confirmed as the best performer on the FTSE Mib +40.5pp YTD. Volumes in line with the last 3 months: 3.5 million trades. Unicredit reaffirmed its BUY recommendation on the stock, raising the TP to €6.6 (from €6.1). The positive turn in the sector and Pirelli’s strategic position compared to its peers, particularly on emerging markets, have led to a review on the companies forecasts: Ebit margin tyre 2010E 8.5% (Ebit € 397 mln ), 9% 2012E (Ebit € 449.7 mln ). Centrobanca confirms positive forecasts (TP €6.29, BUY recommendation) considering Pirelli as a least risky stock of the international sector.
Major European peers ended the week with a mixed result: Continental -0.6%, Nokian +1.7%. Michelin recovered partial losses (-15.05% from the previous day before the share capital increase announcement) ending the week with a +2.7% performance.
Pirelli RE continues its positive trend ending the week at 0.47 increased by 6.7%: remaining the only positive stock from the sector along with IGD (+8.3%)