Despite the profit taking of recent sessions – in line with the general market trend – Pirelli has been outperforming both the Italian Blue Chip index and its main international peers decisively. From the start of the year to 30 December 2010, the share price rose by 39.5% (from €4.34 to €6.05), positioning itself as one of the best shares on both the Italian market (relative performance +52.7 pp compared to the FTSE MiB index) and in the European auto & parts sector (+35.8pp higher then Michelin). Trading increased over the year: the daily average was 4.3 mln shares, +10% compared to 2009.
The full transformation of the Group into a pure tyre company, the solid operating performance and the presentation of its new industrial plan for 2011-2013 all supported Pirelli’s performance on the stock market in 2010. It also remains one of the stocks preferred by analysts. The prevalent recommendation was Buy, with a consensus Target Price of €7.05.