Major international markets were up in the week from July, 30 to August 3, 2012 (Milan +3.9%, +2.6% Frankfurt, Paris +2.9%, +2.8% in London, Madrid +2.1%). After an initial negative reaction to the words of the ECB Governor, Draghi, (economic interventions subject to a request for aid from Countries) markets recovered at the end being positively impacted by U.S. employment data and the Spanish Prime Minister Rajoy willing to ask the ‘EFSF intervention in case of need.
Similar trends for the European Auto&Parts (+2.6% Stoxx the car).
Pirelli ended the week at € 8.58 outperforming the sector with a +6.5% performance. Daily average traded volume was just over 5 million pieces.
UBS has initiated coverage of the stock with a “BUY” rating and a target price of 10 €. The broker has a positive view on Pirelli Premium strategy and consider the stock “highly attractive”. The consensus target price now stands at 10.5 € with 90% of coverage with a Buy rating.