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 was one of the best-performing Auto & Parts shares in the week 25-29 January 2010, outperforming not only the European reference index (+3.7pp), but also the Italian blue chip index (+3.8 pp), closing at €0.423: a 1% rise in a week characterised by extensive selling in all sectors.
During the week Intermonte revised its valuation of the shares (TP to €0.50 from €0.46), confirming its Outperform recommendation. According to this broker, the market is underestimating the trend of the tyre business for 2010 and 2011,  not fully appreciating the greater focus on the core business and the separation of Pirelli RE, which will take place by the end of 2010.
A poor week for Pirelli RE: the share price closed at  € 0.457 (-7.7%).

Despite the pull back in Pirelli (-2% at € 0.42) as profit taking sets in for the week of December 14-18 2009, the stock stands among best performers in the European tyre sector, going up +59.7% since the beginning of the year, compared to +42% for Michelin and +29.5% for Continental.
Unicredit raised the target price on Pirelli & C from €.025 to €0.45 confirming a “Hold” recommendation. This upgrade is due to the cutback on the holding discount (from 40% to 15%) and the improvement on the evaluation of Pirelli Tyre, using the same multiples as its European peers.
The average target price on Pirelli settles at €0.48; a “BUY” recommendation prevails on coverage made by 18 stock analysts.
Pirelli RE ends the with a -5.2% decline, in line with the Italian Real Estate sector (Gabetti -7.7%, Risanamento -5.1%, Bastogi -3%)

For more in-depth information please follow the link to: Investors > Pirelli in the stock market > Peers & Markets; or click here.