Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.

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The week from May 27 to 31 was a mixed one for major European stock markets (Milan +1.9%, London -1.7%, Paris -0.2%, +0.5% Frankfurt, Madrid +0.7%). The positive U.S. macroeconomic data (consumer confidence in May to the highest level since February 2008, first quarter GDP growth of 2.4% QoQ) drove upward stock prices in the early sessions of the week but caution prevails among operators waiting for more visibility on the evolution of the Fed monetary policy: the U.S. Central bank may stop the current Quantitative Easing in light of the positive economic data.

European Auto&Parts stocks continued to rise last week gaining 3.1%: according to Morgan Stanley, the sector benefited last month from sustained purchases by investors (+11.8% the performance of the European index; +10.4 pp vs. DJ Stoxx 600) following the prospects of a recovery in the second half of 2013. An important signal will be given by the forthcoming publication of May car registrations data.

Pirelli ended  the week at € 8,945, a rise of 4.9% with an average daily trading volume of around 1.8 million. Goldman Sachs has revised the recommendation on the stock to Neutral (from Sell) and the target price to € 9.8 from € 7.6: the increase in valuation reflects the reduction in the cost of capital and the revision of the estimates on profitability; the positive view on the sector was confirmed. The consensus target price stands now at € 9.3 with 40% of the coverage with a Buy recommendation.

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