Sales were focussed on the Auto & Parts sector in the week 8-12 February. The markets reflect the uncertainty in the sector about 2010 (trend in new vehicle registrations in Europe, increase in raw material costs). Pirelli closed the week at €0.377, a fall of 3.7%, more modest than those reported by its peers:  Continental -12%, Michelin -6%.
Pirelli RE closed 9.9% down.
 

Pirelli Broadband Solutions has developed Epicentro™ PMK-A key, a pocketable device that expands the classic functions of electronic car keys and transforms the vehicle into an environment connected to the Internet.
Epicentro™ PMK-A allows onboard electronic systems to connect to a network server for traffic information, entertainment, tele-surveillance and remote maintenance of the car, thanks to technology such as the Pirelli Management Platform, which has already been widely adopted for the diagnosis and remote configuration of connected devices for the home. The Key also allows the passengers to connect their laptops or smartphones to the internet via WiFi.
Among its many functions, the Pirelli key also supports biometric driver identification by reading his/her finger prints and allowing profiling, for example limiting the maximum speed of the car if the driver has just passed his or her test.
Epicentro™ PMK-A  was introduced on 27 January 2010 at Milan’s Palazzo Mezzanotte, during the presentation of ‘Summa’, a concept car design ‘for the new decade’, which incorporates technologically innovative features: Pirelli is one of its principal technology partners.

A bad week for European stock markets (-4.9% Milan, -2.5% London, -3.1% Frankfurt, -4.7% Paris), burdened by fears of the high indebtedness of Spain, Greece and Portugal, and about the strength of the euro.
Sales mainly involved the banking sector (-6.4% the European reference index), the auto& parts sector (-4.5%) and the construction industry (-4.3%).
Pirelli closed the week at € 0.391, a fall of 7.6%. Its peers also closed down, with Continental falling by 6% and Micheln and Nokian by 5%. During the week, Kepler upgraded its recommendation for Pirelli &C from Hold to Buy, with target prices increasing from € 0.45 to € 0.47. The upside is driven by the reduction in the weight of holding costs on NAV, in the light of the company’s declared commitment to the process of focussing on its industrial activities, and the positive expectations for its tyre business in 1H 2010. The Consensus Target price is € 0.486 on coverage of 18 brokers, 76%  BUY, 24% Hold.
Pirelli RE closed 7.7% down.