PEERS & MARKETS

A positive week on the stock market for Pirelli & C (up 1.3% to € 0.44) markedly better than the performance of its European peers (-0.6% Michelin, -1.1% Continental, -4.7% Nokian).
The rising share price was underpinned by recent valuation upgrades after publication of the company’s annual results: 9 of the brokers (50% of the total coverage) raised the Pirelli Target Price, by an average of 4 eurocents. The mean consensus valuation is around 0.51€; with  a Buy recommendation from most brokers (82% of the total).
The performance of the company’s peers in the tyre sector was weak.
Pirelli RE also outperformed other shares in the sector  (+3.9 percentage points higher than the Epra Europe index) rising 4.5% to € 0.464 by the end of the week.

PEERS & MARKETS

International markets end the October week 19-23 down on profit taking.
After the two week rally (+17%),  Pirelli & C. ends the week at €0.402, a 2.9% decline, in line with the European tyre sector (Michelin -3% and Continental -2.7%). Also during the week, Deutsche Bank raised its target price on the stock from €0.40 to €0.47, confirming a “Buy” recommendation on the stock.  This upside is mainly due to the cutback on the holding discount and the improvement on the evaluation of Pirelli Tyre.
Average ratings from stock analysts on Pirelli settle at €0.40; a “BUY” recommendation prevails on coverage made by 18 business banks.
Pirelli RE ends the with a 6.6% decline, compared to the European real estate sector down by 0.5%.

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PEERS & MARKETS

The markets saw profit taking on week 21-25 of September.  Major European markets reported losses with sales mainly in the cyclic sector as well as in the Auto & Parts, construction and oil industry sector (all dropped by more than 3%).
Following the market rally over the past few weeks (+17% from September 1st to September18th), Pirelli & C finishes the week at € 0.359, a 4.9% decrease. The stock was upgraded on average by 9 cents; Intermonte (buy rating at €0.46 from €0.37), Deustche Bank (Buy at €0.40 from €0.34), UBS (Neutral at €0.38 from €0.28), Kepler (Reduce at €0.31 from €0.22). This upside is mostly linked to a reassessment of the tyre business and to a lower impact on corporate costs in the Group’s net asset value.
Pirelli RE finishes the week with -4.4% (€0.639) lagging behind the European real estate sector by about one percentage point.

For more in-depth information please follow the link to: Investors > Peers & Markets